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June 6, 2018

Euro Sun alters proposal for C$1.5bn acquisition of Nevsun

Euro Sun Mining has revised the terms of its portion of the joint proposal with Lundin Mining for the C$1.5bn ($1.15bn) acquisition of Nevsun Resources.

Euro Sun Mining has revised the terms of its portion of the joint proposal with Lundin Mining for the C$1.5bn ($1.15bn) acquisition of Nevsun Resources .

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Under the amended offer, Euro Sun will offer C$150m ($115m) in cash and the same value in stock as its share of the deal.

The proposed acquisition, which values Nevsun at C$5 ($3.85) per share, also includes C$600m ($467.87m) each in cash and stock from Lundin .

“We have extensive operational experience across Africa and look forward to meaningful investment into Eritrea and the Bisha mine allowing it to meet its full potential.”

The original offer was rejected by Nevsun and comes after numerous attempts made by Lundin to acquire Nevsun’s European assets, including the Timok copper-gold project in Serbia.

After Nevsun refused the offers, Lundin partnered with Euro Sun to make a new bid.

Euro Sun Mining president and CEO Scott Moore said: “We are ready and willing to engage with Nevsun in friendly and meaningful discussions to conclude a transaction in the best interests of all stakeholders.

“We have extensive operational experience across Africa and look forward to meaningful investment into Eritrea and the Bisha mine allowing it to meet its full potential.”

The company noted that so far, shareholders representing more than 30% of Nevsun shares outstanding have backed the acquisition offer.

The offer indicated that Euro Sun and Lundin would share the Nevsun assets, with Lundin preferring the acquisition of its European assets, including the Timok project, and Euro Sun interested in ownership rights over the remaining asset portfolio, which contains the Bisha mine and its associated cash balance.

Euro Sun expects that the acquisition of the Bisha mine will reduce the risks involved in the development of its Rovina Valley gold-copper porphyry project in Romania.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
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  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
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by GlobalData
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