The Asia Miner

OCT-DEC 2018

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Page 18 of 51

the asia miner • volume 15 • issue 4 17 REGIONAL FOCUS: China Nevsun Resources and Zijin Mining Group have ent ered into a definiঞve agreement pursuant to which Zijin will make a take-over bid to acquire all of the issued and outstanding shares of Nevsun for C$6.00 per share in cash. The Offer is valued at C$1.86 billion (US$1.41 billion). The cash consideraঞon of C$6.00 per share represents a premium of 57 per cent over Nevsun's unaffected closing price of C$3.82 on May 7, 2018, the day Lundin Mining first publicly announced its intenঞon to acquire Nevsun. In addiঞon, the Offer is C$1.25 per Nevsun share, or 26 per cent, more than the C$4.75 per share hosঞle take-over bid for Nevsun launched by Lundin on July 26, 2018. The Offer is not subject to any financing condiঞons. Nevsun's Board of Directors unanimously recommends that Nevsun shareholders tender their shares to accept the Offer. Nevsun's Board of Directors conঞnues to recommend that Nevsun shareholders reject the hosঞle take-over bid launched by Lundin on July 26, 2018 and not tender their shares to the Lundin offer, which will expire on November 9, 2018. "This premium transacঞon is an excellent outcome for our shareholders, and the result of a rigorous and compeঞঞve global process to generate maximum value for Nevsun's outstanding assets," said Ian Pearce, Chair of Nevsun's Board of Directors. "The all-cash consideraঞon of C$6.00 per share beer reflects the fundamental value of Nevsun's mining and development assets, while also providing an appropriate change of control premium to our shareholders." "Zijin is a proven mining industry operator with a US$10 billion market capitalizaঞon and a demonstrated track record of successfully compleঞng internaঞonal transacঞons. The Board unanimously recommends that Nevsun shareholders tender their shares to accept this offer and receive the significant value that it represents." Chen Jinghe, Chairman of Zijin, added, "Nevsun is an excepঞonal operator, with a strong focus on safe, efficient and sustainable mining pracঞces. As the new owner we will conঞnue that focus, and we look forward to working with stakeholders in Eritrea and Serbia to advance these mining and development assets." Zijin is looking to further extend the life of the Bisha mine in Eritrea and explore it for new deposits. The company's objecঞve at the Timok Project in Serbia will be to rapidly develop the Upper Zone and bring it into producঞon, conঞnuing to advance and define the world-class potenঞal of the Lower Zone. Among Zijin's substanঞal global mining acঞviঞes are strategic partnerships with Toronto-based Barrick Gold, related to the Porgera mine in Papua New Guinea; and Vancouver-based Ivanhoe Mines, related to the Kamoa- Kakula copper project in the Democraঞc Republic of Congo. Zijin Mining to acquire Nevsun for US$1.41b diemme ® F i LTRATiON FAST CYCLiNG FiLTe R PR e SS GHT F Diemme ® Filtration GHT-F filterpress is the cutting-edge technology for large mineral dewatering. Fast cycles and large volume make possible to filter up to 8.000 tpd of dry solid w ith a single unit. Low maintenance, thanks to the rugged design, makes it the right answer for tough mining applications.

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