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China approves Zijin's US$1.41bn Nevsun buy

China's Zijin Mining Group has been cleared by Chinese regulators to consummate the proposed friendly US$1.41 billion (C$1.86 billion) acquisition of Canadian base metals producer Nevsun Resources (TSX:NSU).
China approves Zijin's US$1.41bn Nevsun buy China approves Zijin's US$1.41bn Nevsun buy China approves Zijin's US$1.41bn Nevsun buy China approves Zijin's US$1.41bn Nevsun buy China approves Zijin's US$1.41bn Nevsun buy

Nevsun's Timok Upper Zone asset has attracted significant investor interest in 2018

Staff Reporter

The company has completed the Chinese State Administration of Foreign Exchange (SAFE) registration, a three-pronged process that took place over the past two months.

Nevsun said Tuesday the SAFE registration was the last Chinese regulatory condition which, together with Investment Canada Act approval received last month, rendered both regulatory conditions met.

According to Nevsun, which operates the Bisha copper-zinc-gold mine in Eritrea and is developing the sizeable Timok Upper and Lower Zone copper projects in Serbia, the transaction remains subject to customary closing conditions.

Nevsun's Timok assets have attracted some heavyweight investor attention this year.

The deal is not subject to financing conditions and no specific closing date has been set, but the companies have agreed to cooperate until all regulatory approvals are in place.

Nevsun's equity has doubled in the past 12 months to C$5.96 a share, which gives it a value of $1.8 billion.