BRIEF-Nevsun Resources and Reservoir Minerals merge

Sun Apr 24, 2016 9:59pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

April 24 (Reuters) - Nevsun Resources Ltd :

* Nevsun Resources and Reservoir Minerals combine and consolidate Timok copper project ownership

* Says deal for a total value of approximately $365 million

* Upon completion of deal, current Nevsun shareholders to own about 67 pct of combined co, current Reservoir shareholders to own remaining 33 pct

* Transaction will allow both Reservoir and Nevsun shareholders to participate in ongoing cash flow generation of bisha mine

* Co to buy all common shares, restricted share units of Reservoir on basis of 2 common shares and $0.001 in cash for each Reservoir common share

* Says has subscribed for 12.2 million common shares of Reservoir at a price of C$ 9.40 per share, for a total subscription price of C$ 114.4 million

* Says arrangement has been unanimously approved by boards of directors of both Reservoir and Nevsun

* Directors,Management of both cos have agreed to commit to vote their respective common shares, in favour of arrangement

Source text for Eikon:

Further company coverage: (Bengaluru Newsroom)