(Ecofin Agency) - Today September 05, 2018, Nevsun Resources which owns shares in Bisha zinc and copper mine in Eritrea, announces that it struck a deal with Zijin Mining. Under that agreement, the Chinese mining company Zijin Mining, will buy Nevsun Resources’ outstanding shares at CAD6 each. The overall amount of this transaction is estimated at CAD1.86 billion ($1.41 billion).

The offer submitted by Zijin is 26% higher than the hostile bid of CAD4.75 per shares submitted by Lundin Mining in July 2018. Nevsun’s administrative board suggested its shareholders should reject Lundin’s offer and agree for Zijin’s.

“Zijin is a proven mining industry operator with a US$10 billion market capitalization and a demonstrated track record of successfully completing international transactions. The Board unanimously recommends that Nevsun shareholders tender their shares to accept this offer and receive the significant value that it represents”, Ian Pearce, president of Nevsun’s administrative board said in a press release published on the company’s website.

Nevsun Resources Ltd owns 60% of the 121 kilometers long Bisha mine, located 150 km West Asmara and ranked among the major open pit high-grade copper mine in the world.

Louis-Nino Kansoun