Canadian copper producer Nevsun Resources has turned down a C$1.5bn ($1.16bn) takeover bid from Lundin Mining and its partner Euro Sun Mining.
Nevsun shareholders were to receive C$5 ($3.88) for every Nevsun share currently held under the proposed offer, comprising C$2 ($1.55) each in cash and shares provided by Lundin, as well as C$1 ($0.77) in shares of Euro Sun.
Lundin noted that repeated attempts to persuade Nevsun into accepting the offer did not achieve the desired results.
The company previously made two initial offers to Nevsun in February this year, which were followed by a proposal on 3 April to acquire Nevsun’s European assets, including the Timok project.
After the proposals were rejected, Lundin partnered with Euro Sun to make a fresh offer on 30 April, which covered the acquisition of all of Nevsun’s outstanding common shares.
Lundin Mining president and CEO Paul Conibear said: “Given the significant near-term financing needs of the Timok project and our strong balance sheet, the timing is ideal for Lundin Mining to acquire the Timok project and bring it into production as soon as possible.
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“After months of attempting to reach an agreement, we are disappointed that Nevsun has prevented its shareholders from considering our premium proposals and at this point in time.
“We believe that all Nevsun shareholders should be made aware of this opportunity.
“We remain fully committed to negotiating a transaction with Nevsun under the very attractive terms proposed.”
Lundin was set to acquire Nevsun’s European assets, including the Timok project, under the proposed deal, while Euro Sun would have been granted ownership rights over Nevsun’s remaining asset portfolio, which includes the Bisha mine and its associated cash balance.
Euro Sun noted that its acquisition of the Bisha mine would have substantially de-risked the development of the Rovina Valley gold-copper porphyry project in Romania.