Nevsun Resources rejects C$1.5 billion offer from Lundin Mining, Euro Sun

(Reuters) - Canadian miners Lundin Mining Corp and Euro Sun Mining Inc disclosed on Monday an offer made earlier to buy base metals company Nevsun Resources Ltd, which rejected the C$1.5 billion ($1.16 billion) proposal.

Under the terms of the offer dated April 30, Nevsun shareholders were to receive a total consideration of C$5 per Nevsun share including C$2 in cash funded by Lundin Mining, C$2 in shares of Lundin Mining and C$1 in shares of Euro Sun, Lundin Mining and Euro Sun said in a joint statement.

Vancouver-based Nevsun rejected the offer on Monday, the statement added.

“After months of attempting to reach an agreement, we are disappointed that Nevsun has prevented its shareholders from considering our premium proposals,” the companies said, adding that they remain committed to negotiating a deal with Nevsun.

“At this point in time, we believe that all Nevsun shareholders should be made aware of this opportunity,” they said.

According to the offer, Lundin Mining was to own Nevsun’s European assets while Euro Sun would own the remainder of the company.

Reporting by Kanishka Singh in Bengaluru