Nevsun Resources Ltd. (NYSE: NSU) rose Tuesday after Lundin Mining Corporation (TSX: LUN) and Euro Sun Mining Inc. (TSX: ESM) proposed to acquire Nevsun Resources for around $1.5 billion Canadian.
Working together, the company said a news release Monday "Lundin Mining and Euro Sun have identified a way to create significant value. Under the terms of the Proposal, dated April 30, Nevsun shareholders would receive total consideration of C$5.00 per Nevsun share consisting of: (i) C$2.00 in cash funded by Lundin Mining; (ii) C$2.00 in shares of Lundin Mining; plus (iii) C$1.00 in shares of Euro Sun.
"The Proposal would result in Lundin Mining owning the European assets of Nevsun including the Timok project and Euro Sun owning the remainder of Nevsun including the Bisha mine and Nevsun's cash balance."
Lundin Mining and Euro Sun believe strongly that the Proposal should be shared with all Nevsun shareholders.
Lundin Mining CEO Paul Conibear said, "We believe our proposal is extremely compelling and in the best interests of Nevsun shareholders. Our significant experience in underground construction and mining, and track record of operating in Europe demonstrate our ability to be a strong and reputable developer of the Timok project in Serbia.
"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."
Nevsun shares leaped 59 cents, or 19.9%, to $3.56 in New York.
