VANCOUVER, Sept. 12, 2016 /CNW/ - Nevsun Resources Ltd.
(TSX:NSU)(NYSE MKT:NSU) ("Nevsun" or the "Company") is pleased to
announce its intention to introduce a dividend reinvestment plan
("DRIP"). The DRIP will allow shareholders to reinvest their cash
dividends into additional common shares. Participation in the DRIP
will be optional and will not affect shareholders' cash dividends
unless they elect to participate in the DRIP. Details on the DRIP
and the timing of implementation will be provided in the
announcement of the third quarter 2016 dividend which is expected
no later than September 22, 2016.
Benefits of the DRIP for Nevsun shareholders would include:
- Commission free – Shareholders will not pay any costs or
commissions in connection with purchases of common shares under the
DRIP.
- Discount – Common shares issued under the DRIP at a
discount to the market price.
- Full or partial participation – Shareholders can elect
to receive all or part of their dividend in additional common
shares.
- Participation rights – Shareholders can elect to
participate or cease to participate in the DRIP from time to
time.
Cliff Davis, Nevsun's CEO
commented: "Our dividend is core to our capital allocation
philosophy. The newly implemented DRIP allows our
shareholders to redeploy the Company's dividend in a cost efficient
manner while increasing equity participation in the Company's
tremendous growth profile."
Participation in the DRIP is open to all registered and
beneficial shareholders in Canada,
the United States and other
jurisdictions where participation in the DRIP would not be
prohibited or restricted by applicable law. Dividends are paid only
when declared by Nevsun's Board of Directors and the Company may,
in its discretion, change or eliminate the discount applicable to
treasury acquisitions, or any other terms of the DRIP.
The DRIP, which is currently being finalized, is subject to
Toronto Stock Exchange and New York Stock Exchange approval.
Following approval by Nevsun's Board and the exchanges, details of
the DRIP and how to enroll in it will be provided on the
Company's website at www.nevsun.com/investors/dividends/.
This news release is not an offer to sell or a solicitation of
an offer of securities. Nevsun plans to also file a registration
statement relating to the DRIP with the U.S. Securities and
Exchange Commission.
About Nevsun Resources
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, no debt and pays a peer leading
quarterly dividend. Nevsun is well positioned to grow shareholder
value through exploration at Bisha and the newly acquired Serbian
assets that include the high-grade copper-gold Timok Project.
Forward Looking Statements
The above contains
forward-looking statements or forward-looking information within
the meaning of the United States Private Securities Litigation
Reform Act of 1995, and applicable Canadian securities laws.
Forward-looking statements are frequently, but not always,
identified by words such as "expects", "anticipates", "believes",
"hopes", "intends", "estimated", "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
concerning the Company's current beliefs, plans and expectations
about the future including but not limited to statements and
information made concerning: statements relating to the business,
prospects and future activities of, and developments related to the
Company, anticipated dividends, goals, strategies, future growth,
planned future acquisitions and explorations activities, the
adequacy of financial resources and other events or conditions that
may occur in the future, and are inherently uncertain. The 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, the risks that: (i) any of
the assumptions in the historical resource estimates turn out to be
incorrect, incomplete, or flawed in any respect; (ii) the
methodologies and models used to prepare the resource and reserve
estimates either underestimate or overestimate the resources or
reserves due to hidden or unknown conditions, (iii) exploration
activities or the mine operations are disrupted or suspended due to
acts of god, internal conflicts in the country of Eritrea or Serbia, unforeseen government
actions or other events; (iv) the Company experiences the loss of
key personnel; (v) the Company's operations or exploration
activities are adversely affected by other political or military,
or terrorist activities; (vi) the Company becomes involved in any
material disputes with any of its key business partners, suppliers
or customers; (vii) the Company is subjected to any hostile
takeover or other unsolicited attempts to acquire control of the
Company; (viii) the Company is subject to any adverse ruling in any
of the pending litigation to which it is a party; (ix) Cukaru Peki
Upper Zone Deposit preliminary economic assessment is preliminary
in nature and it includes inferred mineral resources that are
considered too speculative geologically to have the economic
considerations applied to them that would enable them to be
categorized as mineral reserves; and other risks are more fully
described in the Company's Management Information Circulars dated
May 18, 2016 with respect to the
proposed arrangement between Reservoir Minerals Inc. and Nevsun,
and the Company's Annual Information Form for the fiscal year ended
December 31, 2015, which are
incorporated herein by reference. 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, except as required by law. For the
reasons set forth above, investors should not place undue reliance
on the Company's forward-looking statements.
Further information concerning risks and uncertainties
associated with these forward-looking statements and our business
can be found in our Annual Information Form for the year ended
December 31, 2015, which is available
on the Company's website (www.nevsun.com), filed on
SEDAR (www.sedar.com) and on EDGAR
(www.sec.gov) under cover of Form
40-F.
NEVSUN RESOURCES LTD.
"Cliff T. Davis"
Cliff T. Davis
President & Chief Executive Officer
SOURCE Nevsun Resources Ltd.