Nevsun Resources Finalizes Arrangements to Purchase 30% of Bisha Mine for $235.5M

Nevsun Resources Ltd. (NYSE: NSU) advises that it has finalized its arrangements with the State of Eritrea regarding the purchase of 30% of the Bisha mine by the Eritrean National Mining Corporation. The agreed price is US$253.5 million, which will be settled from the after tax cash flows generated by the Bisha mine.

The purchase price determination was subject to a process involving two independent international institutions that were mutually appointed by Nevsun and Enamco in January 2011. It should be noted that the purchase price is not indicative of the fair market value of Bisha but rather the outcome of a price determination process, defined in a 2007 shareholder agreement, based on parameters of the Bisha deposit as it was understood in 2007.