DESCRIPTION: Nevsun is a gold and base metal developer focused on the rapid completion and production of the Bisha Mine, a fully financed high-grade gold, copper and zinc deposit in Eritrea, Africa. The Bisha Mine will be a low-cost gold producer for the first two years of production, and a low-cost, high-grade copper and zinc producer for the remaining 10 year mine life. The project is positioned to return payable metals of:
The information below is based on the most recent information we have
received from analysts and the companies participating in The Gold Report.
We encourage you to visit the company's web site for updates.
"Overhang removed! Despite a horrible day in the broader markets Thursday, shares of Nevsun Resources managed to end in the green. The company announced that it has arranged a non-brokered private placement financing of 52,000,000 common shares at $2.25 per share for $117 million, thus removing the (Bisha financing) overhang on the stock. Management highlighted that the net proceeds from the offering will be used for Bisha mine development and general working capital purposes. The company is confident the funds from this private placement, together with its existing cash and the ongoing one-third contribution by the State of Eritrea to Bisha will be sufficient to see the Bisha project through to cash positive operations. The funding arrangements are in excess of estimated costs to complete so as to provide a reasonable cushion in the event of unforeseen events."
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Morning Coffee, Canaccord Capital (02/05/10)