A diversified Canadian base metal mining company has made a bold move by announcing its intention to acquire a fellow mid-tier miner for over a billion dollars.
Lundin Mining announced in a statement this week that it has expressed an intention to make an all cash offer to acquire fellow Canadian miner Nevsun Resources in a deal valued at C$1.4 billion ($1.07billion).
Through the deal, Lundin will look to acquire and operate Nevsun’s Timok project in Serbia.
This was expressed as much in the announcement, with Lundin President and CEO identifying it as a key part of the transaction.
“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,” said Paul Conibear, President and CEO of Lundin Mining.
Our 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 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.”
The Timok copper-gold project is a 10 year mine operation, producing over 1.7 billion pounds of payable copper.
Earlier this year, Lundin Mining had attempted to buy Nevsun Resources as part of a joint offer with Euro Sun Mining. The C$1.5 billion ($1.6 billion) deal was rejected by Nevsun.