Chinese miner Zijin to pay $57M for additional three per cent of Nevsun shares

Zijin to delist Nevsun from stock exchanges after acquisition complete By Kaaria Quash January 08, 2019 Nevsun Resources’ majority owner, Chinese miner Zijin Mining Group, is purchasing another three per cent of the company’s outstanding shares for $57 million. The

Zijin to delist Nevsun from stock exchanges after acquisition complete
By Kaaria Quash

January 08, 2019

Nevsun Resources’ majority owner, Chinese miner Zijin Mining Group, is purchasing another three per cent of the company’s outstanding shares for $57 million.

The move will give Zijin more than 92 per cent ownership of Nevsun, allowing it to take the final eight per cent by compulsory acquisition.

Nevsun announced its $1.86-billion acquisition by Zijin in September, which amounted to $6 per share, and encouraged its shareholders to accept the friendly offer.

So far, 89 per cent of the shares have tendered. The remaining three per cent amounts to 9.5 million shares.

Once the full purchase is complete, Zijin said it will de-list Nevsun from the TSX and NYSE, and cause Nevsun to cease to be a reporting issuer in Canadian provinces and any other jurisdiction where it currently has that obligation.


RELATED: NEVSUN’S BID TO HAVE HUMAN RIGHTS CASE MOVED TO ERITREA DISMISSED BY B.C. COURT


Zijin, worth US$10 billion, specializes in the exploration and development of gold, copper and zinc. It is listed on the Shanghai Stock Exchange and Hong Kong Stock Exchange.

Nevsun owns the Timok copper-gold project in Serbia and the open pit zinc-copper Bisha mine in Eritrea.

A human rights case against Nevsun brought by three Eritrean refugees, alleging the company was complicit in the use of forced labour at Bisha, will be heard in the Supreme Court of Canada on Jan. 23.

The court will determine whether the case should be heard in Canada or Eritrea. Both the British Columbia Supreme Court and Court of Appeal have ruled that the province has territorial jurisdiction over the case because Nevsun is based in Vancouver.

aseye.asena@gmail.com

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8 COMMENTS
  • k.tewolde January 10, 2019

    Companies changing hands,billions of dollars tendered,shareholders buying stocks,venues switching from NY to Shanghai,where do the Eritrean people fit in this transaction? are they allowed to buy shares from Embaderho or Hagaz?

  • Warsay Adhanom January 10, 2019

    The question is where is the money going? Clearly it has not been invested in Eritrea.

    • Makeda Saba January 12, 2019

      The money for the sale of Nevsun is going to the owners of Nevsun

  • Zeregabir Teaghes January 10, 2019

    Eritreans, please be aware that; ” Mining Companies have the obligation on doing what is promised on the Social and Environmental Impact Assessment made by Nevsun Resources prior to issuing the Mining license “.
    Nevsun is selling its shares to another company thus:
    1. Which company is responsible for the closure-reclamation process?
    2. Is there fund deposited by Nevsun for any negative impact that could arise because of the mining impact?

    • Ghirmay January 10, 2019

      Haw Zeregabir,
      You make a lot of sense and also raise so many valid questions unlike some who ask same old questions that Eritreans have been asking for ages.
      I personally don’t think even the greedy PFDJ gangs are making much incomes from the gold mining anymore. I very much hope and pray that Eritrean people would benefit much more from the services of Massaw & Asseb ports to Ethiopia though.

    • k.tewolde January 10, 2019

      I would worry more on the S.E.I.A that is being made by HGDEF’s illegal tenure than the excavation of our natural resources,that can be cleaned up if the righteous owners (Eritrean people) of the land claim responsibility.

      • Temesgen January 11, 2019

        Why would you worry from your comfortable hiding place in the West? You sound a typical hypocrite and coward just showing off and bluffing as cheap talkative empty acts.

  • ቀሺ ማርስ January 12, 2019

    Hello Temesghen, what can I do? I am left only with blunt tongue, which I prefer to use it against the DIA rather against ወዲ ሃገር ተሓጋጋዚ ደላዪ ፍትሒ።

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