VANCOUVER, June 17, 2016 /CNW/ - Nevsun Resources Ltd.
(TSX:NSU) (NYSE MKT: NSU) ("Nevsun" or the "Company") is pleased to
announce that both Nevsun and Reservoir Minerals Inc. ("Reservoir")
shareholders have voted in favour of the respective resolutions
necessary to approve the plan of arrangement announced April 24, 2016 and amended on June 16, 2016 ("Arrangement") pursuant to which
Reservoir will become a wholly-owned subsidiary of Nevsun.
The Arrangement is expected to close on or about June 23, 2016, subject to applicable regulatory
approvals and satisfaction of other customary conditions.
Nevsun Approval for Issuance of Common Shares
Thespecial resolution approvingthe issuance of the Nevsun common
shares to Reservoir Minerals in connection with the Arrangement was
approved with 98.95% of votes cast voting in
favour.
Reservoir Approval of Arrangement
The special resolution approving the Arrangement was approved
by: (i) 68.24% of the votes cast by Reservoir shareholders present
in person or represented by proxy at the meeting; (ii) 69.15% of
the votes cast by Reservoir shareholders and option holders voting
as a single class present in person or represented by proxy at the
meeting; and (iii) 66.56% of the votes cast by "minority" Reservoir
shareholders.
"This transaction diversifies Nevsun's asset base, putting our
cash balance to work in a strategic and high return investment that
will deliver significant value to our shareholders," said Mr.
Cliff Davis, Nevsun's President and
Chief Executive Officer. "With ongoing cash flow generation from
our Bisha mine, we have the financial strength and proven technical
ability to move the high grade Timok copper-gold project forward in
a timely manner. We look forward to working with all stakeholders
to bring the project into production."
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is the 60% owner of the high grade Bisha
Mine in Eritrea. Bisha has nine years of reserve life,
generating revenue from both copper and zinc concentrates
containing gold and silver by-products. Nevsun has a strong
balance sheet with no debt and pays a peer leading quarterly
dividend. Nevsun is well positioned to grow shareholder value
through exploration at Bisha and acquisition of additional mining
assets.
Forward-Looking Statements
This news release includes information that constitutes
"forward-looking information" or "forward-looking statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995, and applicable Canadian securities
laws. More particularly, this news release contains statements
concerning expectations regarding the timing and successful
completion of the Arrangement, the receipt of all necessary
regulatory and court approvals to give effect to the Arrangement,
the timing of closing of the Arrangement and other statements,
expectations, beliefs, goals, objectives, assumptions and
information about possible future events, conditions, results of
operations or performance. Readers are cautioned not to place undue
reliance on forward-looking statements, as there can be no
assurance that the plans, intentions or expectations upon which
they are based will occur. By their nature, forward-looking
statements involve numerous assumptions, known and unknown risks
and uncertainties, both general and specific, that contribute to
the possibility that the predictions, estimates, forecasts,
projections and other forward-looking statements will not occur,
which may cause actual performance and results in future periods to
differ materially from any estimates or projections of future
performance or results expressed or implied by such forward-looking
statements. Further information concerning risks and uncertainties
associated with these forward-looking statements and Nevsun's
business can be found in Nevsun's Annual Information Form for the
year ended December 31, 2015, which
is available on Nevsun's website (www.nevsun.com), filed under
Nevsun's profiled on SEDAR (www.sedar.com) and on EDGAR
(www.sec.gov) under cover of Form 40-F. Further information
concerning risks and uncertainties associated with the
forward-looking statements related to Reservoir and its business
can be found in Reservoir's Management Discussion and Analysis for
the year ended November 30, 2015,
which is available on the Company's website
(www.reservoirminerals.com) and filed under Reservoir's profile on
SEDAR (www.sedar.com).
Neither the TSX Venture Exchange, Toronto Stock Exchange nor
the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy
or accuracy of this release.
NEVSUN RESOURCES LTD.
"Cliff Davis"
Cliff T. Davis
President & Chief Executive Officer
SOURCE Nevsun Resources Ltd.