Dear Nevsun shareholder,
On behalf of the Board of Directors of Lundin Mining Corporation ("Lundin Mining"), I want to personally invite you to consider our fully valued, all-cash offer (the "Offer"). This Offer, the benefits of which are detailed on our Reasons to Accept the Offer page, gives you an opportunity to realize a significant premium and immediate liquidity for your investment in Nevsun Resources Ltd. ("Nevsun").
Lundin Mining is making its Offer to acquire all the issued and outstanding shares of Nevsun for C$4.75 cash per share directly to you because Nevsun management and Board of Directors has rejected all of the proposals we have made to them. We believe that you, as the owners of Nevsun, deserve the right to make your own decision.
The Offer price represents a significant premium of 82% to the closing price of C$2.61 per Nevsun share on the TSX as of February 6, 2018, the date of the first proposal to Nevsun. The Offer also represents a premium of 42% to the volume weighted average trading price of C$3.36 per Nevsun share over the 20 trading days ended April 30, 2018, the date of Lundin Mining's previously announced public proposal to Nevsun.
We believe that the choice before you is clear:
- You can take advantage of an opportunity to realize a significant premium, immediate liquidity, and certainty of value for your investment in Nevsun; or
- You can opt for the status quo, continued uncertainty amid an unpredictable commodities market, the very real likelihood of significant shareholder dilution in the near future, and the financing and execution risks of developing the Timok Project under Nevsun, who run only one mine of a very different nature to Timok.
Since October 2017, Lundin Mining has attempted to engage in good-faith discussions with the management and Board of Directors of Nevsun about acquiring Nevsun's interest in the Timok Project. Each of our proposals was rejected by Nevsun despite our attempts to address the concerns raised by Nevsun's management and Board.
Given the continuing lack of cooperation and following multiple attempts to address Nevsun's concerns regarding partnership characteristics, bid structure and price, it became apparent to Lundin Mining that Nevsun's management and Board of Directors would not likely agree to a transaction.
We also listened to Nevsun shareholders who have indicated to us they want a choice. Consequently, we felt we had to present our all-cash premium Offer directly to you.
Consider the benefits and take action now to tender your shares to the Offer.
President and CEO