Euro Sun Mining Inc. said June 4 that it amended its portion of the joint proposal with Lundin Mining Corp. for the acquisition of Nevsun Resources Ltd. to 50% cash and 50% stock.
The proposed offer now comprises C$5 per share for Nevsun's entire stock and includes C$150 million in cash from Euro Sun and C$600 million in cash from Lundin along with C$150 million of Euro Sun stock and C$600 million in Lundin stock.
Euro Sun's stock portion only represents 10% of the total consideration under the plan.
To date, shareholders representing more than 30% of Nevsun shares have expressed support for the takeover offer, according to a statement.
"We are ready and willing to engage with Nevsun in friendly and meaningful discussions to conclude a transaction in the best interests of all stakeholders," Euro Sun President and CEO G. Scott Moore said.
Lundin and Euro Sun submitted the joint proposal in late April for a C$1.5 billion cash and stock acquisition of Nevsun, but the target company rejected the offer May 7.
Nevsun spurned the bid, saying it overvalued Euro Sun assets and undervalued its own, while Lundin said it offered a premium to Nevsun's recent share price, among other things.
Under the proposal, Lundin would own Nevsun's European assets, including the Timok copper project in Serbia. Euro Sun would take control of the remaining assets, including the Bisha zinc project in Eritrea and Nevsun's cash balance.
