May 8, 2018 / 11:24 AM / a year ago

BUZZ-Nevsun Resources: Jumps on Lundin Mining, Euro Sun offer

** U.S.-listed shares of Canadian base metals co jump ~18 pct to $3.50, top pct gainer across all U.S. exchanges premarket

** Nevsun rejects proposal from Canadian miners Lundin and Euro Sun to acquire all of Nevsun’s shares for ~C$1.5 bln ($1.16 bln)

** Under terms of offer dated April 30, NSU shareholders were to receive a total consideration of C$5 per NSU share including C$2 in cash funded by LUN, C$2 in LUN shares and C$1 in ESM shares

** LUN said it has been unable to acquire NSU after numerous attempts; LUN submitted its first proposal to NSU on Feb. 7 and a further proposal on Feb. 25; both were rejected

** Raymond James says the offer represents a slight discount to NSU’s net asset value; Brokerage values NSU at C$1.66 bln vs. offer of C$1.51 bln

** Adds proposal would result in LUN owning the European assets including the Timok project and broker sees greater value post development of Timok asset

** As of Monday’s close, U.S.-listed shares of Nevsun rose ~22 pct this year, while Canadian-listed shares climbed ~25 pct

$1 = C$1.30 Reporting by Shreyashi Sanyal in Bengaluru

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