From: Biniam Haile \(SWE\) (eritrea.lave@comhem.se)
Date: Tue Jul 14 2009 - 13:07:21 EDT
Bisha Project Finance Approvals - US$235 million
July 13, 2009
Nevsun Resources Ltd., (NSU-TSX/NYSE AMEX) is very pleased to announce
that its Bisha Project in Eritrea has received all required credit
approvals from the project finance lenders for debt facilities totaling
$235 million. Documentation of the facilities has been progressing in
parallel and financial close is expected shortly. All amounts are
expressed in United States dollars.
The debt package is a mix of senior and subordinated loans from a
lending group comprised of seven institutions from Europe and South
Africa. The arrangements include an available cost over-run facility of
$30 million that will be in addition to a contingency allowance of $32
million in the budget. The Project is now more than one third completed,
and the forecast cost to complete remains on budget.
Endeavour Financial is the Company's project finance advisor.
At recent metal prices, the Project is expected to generate enough cash
in the first two and a half years to repay all debt facilities, as well
as fund the copper phase mine expansion during the same period. The
projected operating cash costs for gold production are estimated to be
less than $230/oz, including royalties. The after tax internal rate of
return of the Project, using recent metal prices and including the cost
of finance, is approximately 54%.
The mine is expected to start producing gold in Q3 2010. A recent update
on the Project itself can be found in the Company's Q1 MD&A and news
release dated May 13, 2009. Photographs of progress can be found on the
Nevsun web site at - http://www.nevsun.com/properties/photo_gallery/.
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, production schedule,
details of the debt package and payback time, operating costs and costs
to project completion, metals price projections and assumptions.
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"
Cliff T. Davis
President & Chief Executive Officer
Nsu09-04.doc
For further information, Contact:
John Clarke
(604) 623-4700
1-888-600-2200
e-mail: nevsuninfo@nevsun.com
Website: www.nevsun.com
http://www.nevsun.com/news/index.php?
<http://www.nevsun.com/news/index.php?&content_id=76> &content_id=76
----[This List to be used for Eritrea Related News Only]----