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Additional Information
Market: TSX AMEX
Sector: Gold Mining
EPIC: NSU
Latest Price: 6.42  (-3.31% Descending)
52-week High: 7.06
52-week Low: 4.59
Market Cap: 1,270.80M
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Nevsun Resources
www.nevsun.com

Nevsun Resources is a gold and base metal explorer/developer with a focus on developing mining projects in Africa. Nevsun is currently focused on advancing its high grade gold, copper and zinc Bisha Project in Eritrea.

Full Nevsun Resources profile here
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Nevsun Resources – Secures Bisha Project Finance Approvals up to US$235 Million

15th Jul 2009, 11:22 am by Sam Kiri
Nevsun Resources – Secures Bisha Project Finance Approvals up to US$235 Million

May be the credit crisis is still not over but for companies with advanced stage gold assets, financing has never been a problem. Toronto and AMEX listed Nevsun Resources (TSX/AMEX: NSU) has just received all required credit approvals from the project finance lenders for debt facilities totalling $235 million to be utilised for the development of the Bisha Project, Eritrea. Documentation of the facilities has been progressing in parallel and financial close is expected shortly. This proves the old adage that there are always investors for good projects.

The debt package is a mix of senior and subordinated loans from a lending group comprised of seven institutions from Europe and South Africa. The arrangements include an available cost over-run facility of $30 million that will be in addition to a contingency allowance of $32 million in the budget. The Project is now more than one third completed, and the forecast cost to complete remains on budget.

The loan facility comes as no surprise as Bisha is expected to generate enough cash in the first two and a half years to both repay all debt facilities, as well as fund the copper phase mine expansion. Bisha is a high grade deposit and as such its projected operating cash costs including royalties are estimated to be less than $230/oz Au. The mine is expected to start producing gold in Q3 2010.

Benefiting from low site operating costs throughout the projected mine life, Bisha is characterised by its high returns and quick capital payback. A strengthening US dollar is expected to improve the economics further. The after tax internal rate of return of the Project, using recent metal prices and including the cost of finance, is approximately 54%.; impressive by any standard. No wonder Nevsun has financial backers!

Market uncertainties may make investors nervous but the continued progress by Nevsun in securing finances and Bisha development strengthens the company’s investment case. The management continues to deliver the promised business plan regardless of market conditions. We will provide further update on as the story unfolds.

About Nevsun Resources
Nevsun Resources Ltd. is a gold and base metal explorer/developer with a focus on developing mining projects in Africa. Nevsun is currently focused on advancing its high grade gold, copper and zinc Bisha Project in Eritrea. The project is developed with the Eritrean government as a partner. The project has 27.2 million tonnes of measured and indicated resource and 11.7 million tonnes of inferred resource (43-101 compliant).

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