TORONTO (Reuters) – Canada’s Nevsun Resources Ltd has agreed to a buyout bid worth C$1.86 billion ($1.41 billion) from China’s Zijin Mining Group Co, the companies said on Wednesday, in a deal trumping Lundin Mining Corp’s earlier hostile offer.
Zijin, which also has ventures with Canada’s Barrick Gold and Ivanhoe Mines, said it plans to rapidly develop Nevsun’s high-grade Timok copper project in Serbia and extend the life of an Eritrean copper and zinc mine.
On Friday, Zijin emerged as the top bidder for a 63 percent stake in Serbian’s RTB Bor copper complex, near the Timok deposit, after pledging a $1.26 billion investment in the operation.
Vancouver-based Nevsun, which rejected multiple Lundin bids as inadequate, is recommending that shareholders accept Zijin’s C$6.00 per share cash offer, 26 percent above Lundin’s C$4.75 a share cash bid.
Lundin, which took is C$1.4 billion bid directly to shareholders in July after earlier informal proposals were rejected, declined to comment on the matter.