Nevsun Resources to buy Reservoir Minerals for $365 mln

Sun Apr 24, 2016 10:53pm EDT
 
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April 24 (Reuters) - Canadian miner Nevsun Resources Ltd said it has agreed to buy Reservoir Minerals Inc for about $365 million in cash and stock.

Nevsun will pay two shares of Nevsun and $0.001 in cash for each Reservoir share, the company said on Sunday.

The deal values Reservoir shares at C$9.401 each, representing a 35 percent premium to its last close, based on Nevsun stock's Friday closing price.

The deal will allow Reservoir to exercise its right of first refusal on Freeport-McMoran's stake in Timok project, scuppering Lundin Mining's previously announced acquisition of the stake. (Reporting by Parikshit Mishra in Bengaluru; Editing by Gopakumar Warrier)