Nevsun Resources: Jumps on Lundin Mining, Euro Sun offer

Euro Sun Mining

08/05/2018 12:24

** U.S.-listed shares of Canadian base metals co  NSU.N 
jump ~18 pct to $3.50, top pct gainer across all U.S. exchanges
premarket
    ** Nevsun rejects proposal from Canadian miners Lundin
 LUN.TO  and Euro Sun  ESM.TO  to acquire all of Nevsun's shares
for ~C$1.5 bln ($1.16 bln)
    ** Under terms of offer dated April 30, NSU shareholders
were to receive a total consideration of C$5 per NSU share
including C$2 in cash funded by LUN, C$2 in LUN shares and C$1
in ESM shares  urn:newsml:reuters.com:*:nL3N1SE62X
    ** LUN said it has been unable to acquire NSU after numerous
attempts; LUN submitted its first proposal to NSU on Feb. 7 and
a further proposal on Feb. 25; both were rejected  urn:newsml:reuters.com:*:nGNX4Xj7bn
    ** Raymond James says the offer represents a slight discount
to NSU's net asset value; Brokerage values NSU at C$1.66 bln vs.
offer of C$1.51 bln
    ** Adds proposal would result in LUN owning the European
assets including the Timok project and broker sees greater value
post development of Timok asset
    ** As of Monday's close, U.S.-listed shares of Nevsun rose
~22 pct this year, while Canadian-listed shares  NSU.TO  climbed
~25 pct
    ($1 = C$1.30)

 (Reporting by Shreyashi Sanyal in Bengaluru)
 ((RM: Shreyashi.Sanyal.thomsonreuters.com@reuters.net))