Proactiveinvestors recommends
Additional Information
Market: TSX AMEX
Sector: Gold Mining
EPIC: NSU
Latest Price: 3.20  (3.56% Ascending)
52-week High: 7.06
52-week Low: 2.72
Market Cap: 641.51M
1 year chart
digital-look imported chart image
1 day chart
digital-look imported chart image
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
Pdf

Nevsun completes C$117m placing to finance Bisha gold mine development

17th Feb 2010, 11:56 am
Nevsun completes C$117m placing to finance Bisha gold mine development

Nevsun Resources (TSX, AMEX: NSU) confirmed that it has completed its non-brokered private placement. The company proposed the equity-based fund-raising on February 4th. The placing is intended to remove uncertainty relating to previously agreed bank finance from South African and European lenders. Nevsun issued 52m shares at C$2.25, raising C$117m.


On the 4th February, Nevsun said it had opted to fully fund the Bisha gold project after the lenders failed to provide the required debt-based financing in a timeframe that suited the company. The development of Nevsun’s flagship Bisha Mine in Eritrea began in 2009, funded by a mixture of capital raised from shareholders and the anticipated debt-facility.


Nevsun’s development partner the Eritrean National Mining Corporation (ENAMCO), which retains a 33% interest in the project, continued to meet its own contributing share of the financing, and that the state government had also remained supportive of the mining industry.


The company previously said that whilst it would have preferred to have continued with leveraged project financing, the overriding priority is to get the mine built and for it to begin cash generation. According to Nevsun, the equity-fundraising ensures this will remain on schedule.


The Bisha project is now nearly 50% complete. “Due to the very robust nature of the project and assuming recent metals prices, the payback to the Company is now expected to be under one year”, Nevsun stated.


“...the Company and ENAMCO have concluded that the debt facilities are sufficiently unreliable and inconclusive for our project.” The project is expected to cost $260 million in total, approximately 4% ahead of the original estimate of $250 million.


Under the terms of the placing, the shares are subject to a hold period which lasts until June 17th 2010.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.