Lundin sets sights on Cukaru Peki copper deposit - USD 1.2 billion offered to acquire Nevsun business in Europe

(Cukaru Peki) Swedish-Canadian consortium Lundin and its partner Euro Sun Mining Inc. disclosed a proposal to acquire Nevsun miner business in Europe for USD 1.2 billion including its Timok copper and gold project in Serbia, the Cukaru Peki deposit.

Bloomberg reports that Vancouver-based Nevsun rejected the unsolicited offer and adds that after the news was disclosed Nevsun shares suddenly rose for as much as 23%.

The New York - based agency reports that Euro Sun has set its sights on Nevsun's Bisha mine in Eritrea and Lundin chose Timok copper and gold project in Serbia

- Timok would allow Lundin to replace long-term production growth lost by its exit from the Democratic Republic of Congo, just as copper heads toward a supply deficit after years of belt tightening by producers to withstand low prices, the text says.

Swedish-Canadian 'team' has said they're looking to spend as much as $3 billion on a new industrial-metal asset as prices recover.

The dearth of new copper mines puts a premium on high-grade projects such as Timok, accounting for Nevsun’s reluctance to a sell.

Lundin said that it had made numerous attempts to engage Nevsun, first approaching it on February 7, then again on February 25 and was rejected both times. The next proposal came on April 3 before submitting its latest proposal April 30.

Nevsun said that its board unanimously rejected the proposal on the grounds that it undervalues the company’s assets.

The proposed offers would provide about 29% premium compared to CAD 3.87 per share which concluded Nevsun's business on Monday on Toronto stock exchange, Bloomberg reports.

Nevsun

Rakita

Lundin

Euro Sun Mining

Cukaru Peki

Timok project

copper

gold

Bisha mine

copper deposit

gold deposit