From: Biniam Haile \(SWE\) (eritrea.lave@comhem.se)
Date: Wed May 13 2009 - 19:14:00 EDT
Nevsun Resources Ltd.: Bisha Update and First Quarter Financial Results
By: Marketwire .
May. 13, 2009 05:23 PM
VANCOUVER, BRITISH COLUMBIA -- 05/13/09 -- Nevsun Resources Ltd. (TSX:
NSU)(NYSE Amex: NSU) wishes to announce its recent financial position
and its quarterly results for Q1 2009 as well as provide an update on
the Bisha project. All amounts are expressed in United States dollars.
The Company's current cash position at the end of March was $29.9
million.
For the period ended March 31, 2009 the Company has reported a loss of
$1.0 million. The results compare to 2008 when, for the period ended
March 31, 2008 the Company reported a loss of $2.6 million, including
$1.5 million from discontinued operations.
Complete details of the Q1 2009 financial statements and management's
discussion and analysis can be found on the Nevsun website at
www.nevsun.com as well as on Sedar at www.sedar.com and EDGAR at
http://www.sec.gov/edgar/searchedgar/webusers.htm.
BISHA UPDATE
The Bisha Project is a World Class gold/copper/zinc deposit in Eritrea.
It benefits from the continued support of the local Eritrea Government
and, despite the "credit crunch", Nevsun is in the process of arranging,
with a reputable lending group, the necessary additional finance for the
Bisha development. The project continues to be on budget. Wet
commissioning is expected to commence in mid 2010 with the hot
commissioning and ramp up to production in Q3 2010.
Bisha Mining Share Company (BMSC), the project company, had, as of March
31, 2009, spent, ordered or arranged approximately $88 million of the
$250 million project cost. Funding to date has been provided by Nevsun
and ENAMCO; the Eritrean National Mining Corporation. ENAMCO is a 40%
owner, contributing 1/3 of the equity requirements. Finance costs will
be in addition to the $250 million project costs.
1. Completion of debt finance: The lending group for the project debt
has been actively dealing with the documentation and normal legal, due
diligence and documentation arrangements. While not absolutely assured
until all approvals and documentation is completed, the planned debt
package will be a mix of senior and subordinated debt coming from a
number of development agencies and commercial banks from Europe and
South Africa. The completion of debt facilities is expected in Q2 2009
and is expected to total $240 million, including a cost over-run
facility of $30 million. The robust nature of the Bisha Project should
result in a fairly quick payback, depending upon the price of gold.
Operating costs for the gold phase is projected at approximately
$200/oz. Endeavour Financial is the project finance advisor.
2. Construction: Photographs of the progress at site can be found on the
Company web site - http://www.nevsun.com/properties/photo_gallery/.
Plant site preparations are advancing close to plan. Construction of the
camp facilities is expected to be completed in early June. Orders have
been placed with terms secured for a substantial portion of the project.
The early order strategy was followed so as to ensure capex costs were
controlled. As a result of exchange rates favorable to the project, as
well as the early order strategy, the Company remains confident that the
Project can be completed within the previously issued capex estimate of
approximately $250 million, excluding cost of finance. The Company
continues to build its team of personnel in Eritrea from available
skills in country and from abroad.
The Company looks forward to progressing Bisha through to production
with the continued full support of the Eritrean Government.
Forward Looking Statements: The above contains forward-looking
statements concerning Eritrean government support, construction,
commissioning and production schedules, details of the planned debt
package, completion date of debt facilities and payback time, operating
costs and costs to project completion. Forward-looking statements are
frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "intends", "estimates", "potential",
"possible" and similar expressions, or statements that events,
conditions or results "will", "may", "could" or "should" occur or be
achieved. Forward-looking statements are statements about the future and
are inherently uncertain, and actual achievements of the Company or
other future events or conditions may differ materially from those
reflected in the forward-looking statements due to a variety of risks,
uncertainties and other factors, including, without limitation, those
described in the Management Discussion and Analysis of the Company. The
Company's forward-looking statements are based on the beliefs,
expectations and opinions of management on the date the statements are
made and the Company assumes no obligation to update such
forward-looking statements in the future. For the reasons set forth
above, investors should not place undue reliance on forward-looking
statements.
NEVSUN RESOURCES LTD.
Cliff T. Davis, President & Chief Executive Officer
Contacts:
Nevsun Resources Ltd.
John Clarke
(604) 623-4700 or 1-888-600-2200
nevsuninfo@nevsun.com
www.nevsun.com
http://uk.sys-con.com/node/962171
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