Canadian Mining Journal


Nevsun trumps Lundin bid for Reservoir’s Timok

VANCOUVER – There’s been ample speculation on when Nevsun Resources (TSX: NSU; NYSE-MKT: NSU) would mobilize its substantial capital position in the mergers and acquisitions arena, and on April 24 the company finally pulled the trigger on a US$365-million deal for prospect generator Reservoir Minerals (TSXV: RMC) and its high grade Timok copper discovery in eastern Serbia.

The deal could be seen as a proverbial white knight scenario since Nevsun has essentially quashed a complex, US$262-million agreement Lundin Mining (TSX: LUN; US-OTC: LUNMF) cut in early March with Timok joint venture partner Freeport-McMoRan (TSX: FCX).

Lundin had been hoping to secure a 75% interest – and development rights – in Timok’s high grade Cukaru Peki Upper zone. There was always a wrinkle in the deal, however, courtesy of a right of first offer (ROFO) Reservoir maintains under an original joint venture agreement with Freeport.

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