July 18 (SeeNews) - The development of the Timok copper and gold project in eastern Serbia has attracted the interest of several strategic investors, Canada-based Nevsun Resources said.
"The work we have been doing has also been noticed by several strategic parties that have expressed interest in participating in the development of Timok," the CEO of Nevsun, Peter Kukielski said in a statement on Tuesday.
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The company also recommended shareholders to take no action in response to the 4.75 Canadian dollars ($3.6/3.1 euro) cash per share hostile takeover offer from Toronto-based Lundin Mining Corp, announced earlier this week.
"The last Lundin expression of interest dated July 3, 2018 re-affirmed its interest in pursuing a transaction at C$5.00 per Nevsun share, funded in cash and Lundin shares. Today's publicly announced intent to make an offer is C$0.25 per Nevsun share (or 5%) below this latest formal communication," Nevsun said.
Lundin has previously made highly conditional confidential non-binding offers to Nevsun but has never presented a binding offer to the company or its shareholders, the company noted.
The Timok copper and gold project consists of the Cukaru Peki Upper Zone and Lower Zone. Nevsun Resources owns 100% of the Cukaru Peki Upper Zone plus a 46% stake in the Cukaru Peki Lower Zone, while Freeport - McMoRan Exploration Corporation owns the remainder.
The project is located within the central zone of the Timok Magmatic Complex (TMC), in the Serbian section of the East European Carpathian-Balkan Arc. The TMC has one of the highest concentrations of copper enrichment in the Tethyan Belt.
(1 euro = 1.53871 Canadian dollars)