Canadian minerals company Lundin Mining is planning to make a formal C$1.4bn ($1.1bn) takeover bid for Nevsun Resources later this month.

The proposed move to acquire all of the issued and outstanding common shares of Nevsun for C$4.75 per share comes after Lundin failed to strike a deal with Nevsun over the past few months.

Lundin first approached Nevsun with two proposals in February this year, both of which were turned down.

“Our offer will represent the clearest path for Lundin Mining to acquire the Timok project and for Nevsun shareholders to realise on the value of their investment.”

Thereafter, the company submitted a new C$1.5bn offer dated 30 April in partnership with Euro Sun, which included payment in cash, as well as issuance of shares in both the companies.

As per the proposal in April, which was rejected by Nevsun, Lundin was keen to acquire the European assets of Nevsun including the Timok project in Serbia, while Euro Sun would own the Bisha mine in Eritrea and Nevsun’s cash balance.

Lundin Mining president and CEO Paul Conibear said: “Following our attempts to constructively engage Nevsun since early February 2018, after having made a series of proposals and observing significant recent changes in the political landscape related to Eritrea, we have determined that the best course now is to make an all cash offer directly to Nevsun shareholders.

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“Our offer will represent the clearest path for Lundin Mining to acquire the Timok project and for Nevsun shareholders to realise on the value of their investment without dilution and financing risk.

“We believe that the proposed Nevsun acquisition consideration is full and fair value and represents a significant premium to Nevsun’s unaffected share price prior to the announcement of our first proposal.”

Meanwhile, Nevsun has advised shareholders not to take any action regarding Lundin’s latest announcement.

Nevsun president and CEO Peter Kukielski stated that significant developments have been realised at the Timok project and the Bisha mine.

He said that a pre-feasibility study (PFS) for the Timok Upper Zone underlined an after-tax net asset value (NAV) of $1.82bn and construction started in May following the receipt of an exploration decline construction permit.

Furthermore, the mine life at Bisha has been extended by three years.

The company noted that the announcement undervalues its scale and assets, adding that if a formal offer is received it would be put up for consideration by a special committee.