Canadian miners Lundin Mining and Euro Sun Mining have disclosed that mid-tier base metals company Nevsun Resources has rejected their C$1.5bn ($1.16bn) takeover proposal.

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Image: Operations at a mine. Photo: courtesy of etaphop photo/ FreeDigitalPhotos.net.

As per the proposal made by the duo towards the end of last month, Nevsun shareholders were offered C$5.00 ($3.85) for each Nevsun share.

Lundin Mining said that had the proposal been fruitful, it would have ended up owning the European assets of the Canada-based Nevsun which include the Timok copper-gold project in the Serbian section of the East European Carpathian-Balkan Arc.

On the other hand, Euro Sun would have owned the remainder of Nevsun’s assets including the Bisha mine in the East African country Eritrea and the cash balance of Nevsun.

Euro Sun president & CEO Scott Moore said: “The acquisition of Bisha represents a unique value creation opportunity for both current Euro Sun shareholders and to our prospective new Nevsun shareholders.

“The addition of an operating asset will substantially de-risk the development of the Rovina Valley gold-copper porphyry project in Romania and we will look to add value at the Bisha mine through an aggressive exploration program.”

Lundin Mining, which is a multinational minerals company, said that it had made several attempts in vain to get Nevsun into talks.

The company said that its first proposal to Nevsun was made in early February followed by another one in the same month, which were both rejected.

In early April, the company proposed to purchase the European assets of Nevsun including the Timok project in a cash-cum-stock deal, which was also turned down.

Later, Lundin Mining partnered with Euro Sun to lead the acquisition of 100% of Nevsun.

Lundin Mining president and CEO Paul Conibear said: “We believe our proposal is extremely compelling and in the best interests of Nevsun shareholders.

“Our significant experience in underground construction and mining, and track record of operating in Europe demonstrate our ability to be a strong and reputable developer of the Timok project in Serbia.”