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From: Biniam Tekle (biniamt@dehai.org)
Date: Tue Aug 24 2010 - 07:50:22 EDT
http://af.reuters.com/article/metalsNews/idAFSGE67M0MS20100823
UPDATE 1-Nevsun's royalty buyout in Africa mine to help results
Mon Aug 23, 2010 10:27pm GMT
* Buys out royalty stake in Africa mine for C$18.5 mln
* Increased stake to add at least $C0.20 per share
* Sees mine starting in Q4, commercial production in Q1
Aug 23 (Reuters) - Nevsun Resources (NSU.TO) (NSU.A) said it bought
out a third party royalty on its flagship mine in the horn of Africa
for C$18.5 million, and said the increased stake would add to
earnings.
The royalty buy out of the Bisha project in Eritrea, whose government
has a 40 percent interest in the project, is expected to add at least
20 Canadian cents a share to earnings, Nevsun said in a statement.
The 1.5 percent net smelter royalty on the gold, copper and zinc
deposit was previously held by an arm's length private company, Nevsun
said.
The project continues on time and on budget and operations are
expected to start in the fourth quarter, with commercial production
before the end of the first quarter of 2011.
Shares of Nevsun, which have risen about 186 percent in the past year,
closed at C$4.78 on the Toronto Stock Exchange. (Reporting by Savio
D'Souza in Bangalore; Editing by Vyas Mohan)
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