VANCOUVER, July 26, 2018 /PRNewswire/ - Nevsun Resources
Ltd. (TSX:NSU) (NYSE AMERICAN: NSU) ("Nevsun" or the "Company")
today acknowledged that it has received an unsolicited offer (the
"Offer") from Lundin Mining Corporation ("Lundin") to acquire all
of the issued and outstanding shares of Nevsun.
Nevsun shareholders are advised to take no action until the
Board of Directors has made a formal recommendation to
shareholders. The Offer will remain open for a minimum of 105 days,
allowing Nevsun shareholders until November
9, 2018 to respond.
The Offer follows an announcement by Lundin on July 16, 2018 of its intention to make an offer
for Nevsun. At that time, Nevsun indicated that Lundin's
announcement ignored the fundamental value of Nevsun. Lundin
has also ignored the recent improvements at the Bisha mine, the new
ultra-large Timok Lower Zone resource and progress at the Timok
Upper Zone project. These achievements have set the stage for
further value enhancement, and attracted the attention of several
strategic parties that have expressed an interest in participating
in the Company's continued development.
Having now received a formal Offer, the special committee of
independent Nevsun directors (the "Special Committee") will
consider it with its advisors before making a recommendation to
Nevsun's Board of Directors. Nevsun's Board will make a
formal recommendation to shareholders via a Director's Circular
within 15 days, in accordance with Canadian securities
regulations.
Advisors
Counsel for Nevsun's Special Committee is Borden Ladner Gervais
LLP. The Special Committee's independent financial advisor is Citi.
Counsel for the Company is Blake, Cassels & Graydon LLP. The
Company's financial advisor is BMO Capital Markets. Laurel Hill
Advisory Group is Nevsun's strategic advisor and information
agent.
Forward Looking Statements
The above contains certain statements that are deemed
forward-looking statements or forward-looking information within
the meaning of the United States Private Securities Litigation
Reform Act of 1995, and applicable Canadian securities laws.
Forward-looking statements are frequently, but not always,
identified by words such as "expects", "anticipates", "believes",
"hopes", "intends", "estimated", "potential", "possible" and
similar expressions, or statements that events, conditions or
results "will", "may", "could" or "should" occur or be achieved.
Forward-looking statements are statements concerning the Company's
current beliefs, plans and expectations about the future, including
but not limited to statements and information about the Lundin
formal offer for all of the shares of Nevsun and the terms and
conditions of an such offer, the business, prospects and future
activities of, and developments related to the Company, goals,
strategies, future growth and other events or conditions that may
occur in the future, and are inherently uncertain. The actual
achievements of the Company or other future events or conditions
may differ materially from those reflected in the forward-looking
statements due to a variety of risks, uncertainties and other
factors, including, without limitation, the risks more fully
described in the Company's Annual Information Form for the fiscal
year ended December 31, 2017 (the
"AIF") and the Company's management discussion and analysis for the
fiscal year ended December 31, 2017
(the "MD&A"), which are incorporated herein by reference. The
Company's forward-looking statements are based on the beliefs,
expectations and opinions of management on the date the statements
are made and the Company assumes no obligation to update such
forward-looking statements in the future, except as required by
law. For the reasons set forth above, investors should not place
undue reliance on the Company's forward-looking statements.
Further information concerning risks and uncertainties
associated with these forward-looking statements and our business
can be found in our AIF and MD&A, which are available on the
Company's website (www.nevsun.com), filed under our profile on
SEDAR (www.sedar.com) and on EDGAR
(www.sec.gov) under cover of Form 40-F.
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is the 100% owner of the high-grade
copper-gold Timok Upper Zone and 60.4% owner of the Timok Lower
Zone in Serbia. The Timok Lower Zone is a partnership with
Freeport-McMoRan Exploration Corporation ("Freeport"), which
currently owns 39.6% and upon completion of any feasibility study,
Nevsun Resources Ltd. will own 46% and Freeport will own 54%. Nevsun generates cash
flow from its 60% owned copper-zinc Bisha Mine in Eritrea.
Nevsun is well positioned with a strong debt-free balance sheet to
grow shareholder value through advancing Timok to production.
NEVSUN RESOURCES LTD.
"Peter Kukielski"
Peter Kukielski
President & Chief Executive Officer
NSU 18-21.doc
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SOURCE Nevsun Resources Ltd.
