Nevsun Resources Ltd.'s board rejected the hostile takeover offer from Lundin Mining Corp. and kicked off a strategic review to evaluate its options.
The company said Aug. 9 that the C$4.75-per-share cash offer "fails to recognize the fundamental and strategic value" of its assets, including the Timok copper project in Serbia and the Bisha zinc mine in Eritrea.
Nevsun asked shareholders to take no action on Lundin's bid, which will close Nov. 9, as it "pursues a full range of value-maximizing alternatives."
The company said it is evaluating four proposals from major and midtier companies it received as part of its recent strategic investment process, which include their willingness to acquire up to a 19.9% stake in Nevsun and partner to develop the Timok project.
Nevsun noted that three of the proposals for securing a minority stake in the company are at a premium to the price Lundin offered.
Dave Smith, the company's chair of the special committee, said the strategic review will not rule out the possibility of a complete sale.
"Discussions are ongoing with several parties that have expressed interest in value-enhancing alternatives to Lundin's hostile bid, and we fully expect that superior offers or other alternatives will emerge from this process," Smith said.