Lundin Mining to make restructured $1.4 billion cash offer for Nevsun Mining

In May, the Toronto-based mining company partnered with Euro Sun Mining Inc. on a roughly $1.5-billion takeover offer that was a combination of cash as well as shares in both Lundin and Euro Sun. (Photo: www.lundinmining.com)

TORONTO — Lundin Mining says it plans to make a restructured $1.4-billion cash offer for Nevsun Resources after a previous attempt fell through.

In May, the Toronto-based mining company partnered with Euro Sun Mining Inc. on a roughly $1.5-billion takeover offer that was a combination of cash as well as shares in both Lundin and Euro Sun.

Nevsun’s board rejected the previous offer because it said it overvalued Euro Sun’s shares and because the company’s involvement raised other uncertainties.

Euro Sun amended its offer in June, but the latest offer has Lundin going it alone with a bid of $4.75 cash per share.

Lundin says the offer represents an 82 per cent premium to Nevsun’s closing price on Feb. 6, when Lundin says it first indicated an interest in acquiring Nevsun’s copper-gold Timok project in Serbia, and a 33 per cent premium to Nevsun’s closing price on the day Lundin announced its previous offer

Vancouver-based Nevsun operates the Bisha Mine in Eritrea and the Timok project in Serbia.