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UPDATE 2-Canadian miner Lundin plans to buy Nevsun Resources for C$1.4 bln

Published 2018-07-16, 06:27 p/m
Updated 2018-07-16, 06:27 p/m
© Reuters.  UPDATE 2-Canadian miner Lundin plans to buy Nevsun Resources for C$1.4 bln

© Reuters. UPDATE 2-Canadian miner Lundin plans to buy Nevsun Resources for C$1.4 bln

July 16 (Reuters) - Canada's Lundin Mining Corp LUN.TO said on Monday it plans to make an offer to buy base metals company Nevsun Resources Ltd NSU.TO for about C$1.4 billion ($1.07 billion), its second proposal in three months.

Lundin offered C$4.75 per share, a premium of 12.8 percent to Nevsun's closing price of C$4.21 on Monday. Lundin has been eyeing Nevsun's large high-grade Timok copper project in Serbia and its Bisha copper and zinc mine in Eritrea, in a partnership with Euro Sun Mining Inc ESM.TO .

Together the two companies proposed to buy Nevsun outright in May for C$1.5 billion, but were rejected by the company saying the price was too low and the deal had a "problematic structure". offer will represent the clearest path for Lundin Mining to acquire the Timok project and for Nevsun shareholders to realize on the value of their investment," Paul Conibear, chief executive officer of Lundin, said on Monday.

Nevsun has been seen as an attractive asset, with bankers and analysts telling Reuters in June that global miner Rio Tinto RIO.AX RIO.L could also be a potential suitor for the Vancouver-based company. Lundin produces copper, zinc and nickel from mines in Americas, Portugal and Sweden. The company said it might pull the offer if Nevsun implemented or attempted to implement any defensive tactics.

TD Securities and GMP Securities are acting as financial advisers to Lundin and Cassels Brock & Blackwell LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are its legal advisers. ($1 = C$1.31)

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