VANCOUVER ,
Sept. 19, 2016 /PRNewswire/
- Nevsun Resources Ltd. (TSX:NSU) (NYSE MKT: NSU)
("Nevsun" or the "Company") is pleased to advise that its Board of
Directors has declared a quarterly cash dividend of US$0.04 per common share (US$0.16 per common share annually). The
dividend is payable on October 14,
2016, to shareholders of record as of the close of business
on September 30, 2016.
This dividend qualifies as an 'eligible dividend' for
Canadian income tax purposes.
Dividend Reinvestment Program
Nevsun also announces that it has adopted its Dividend
Reinvestment Plan ("DRIP"), some details of which were previously
announced on September 12,
2016. The adoption of the DRIP will offer shareholders an
opportunity to increase their investment in Nevsun without
additional transaction costs by reinvesting their cash
dividends into additional common shares of the Company ("Common
Shares").
At this time, the Company intends to have the Common
Shares issued from treasury at a 3% discount to the weighted
average trading price of the common shares on the NYSE during the
five trading days immediately preceding the dividend payment date.
The 3% discount will remain in effect for all cash dividends
that may be declared, if any, by Nevsun's Board of Directors until
otherwise announced. 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.
Participation in the DRIP is optional and open to all
registered and beneficial shareholders in Canada and in the
United States, and those other jurisdictions where
participation in the DRIP would not be prohibited or restricted by
applicable law.
Eligible holders of Common Shares who are not registered
holders and who wish to participate in the DRIP should contact the
financial institution, broker or other nominee through which their
Common Shares are held to provide appropriate enrollment
instructions and to ensure that any deadlines or other requirements
that such financial institution, broker or nominee may impose or is
subject to are met. Residents of the United States are advised that the
Depository Trust Company does not participate in dividend
reinvestment plans for Canadian issuers and that in order to
participate in the DRIP, such shareholder will either need to
become a registered shareholder or contact a financial institution,
broker or other nominee that is a participant in the Clearing and
Depository Services Inc. ("CDS") depository service.
To participate in the DRIP, registered shareholders must
deliver a properly completed enrollment form to Computershare Trust
Company of Canada (the "Agent")
not less than five business days before a dividend record date.
Registered shareholders who wish to participate in the DRIP for the
October 14, 2016 dividend must
deliver a DRIP enrollment form to the Agent no later than
5:00 p.m. Eastern Standard Time on
Monday, September 26, 2016.
Non-registered beneficial shareholders who wish to participate in
the DRIP should contact the broker, investment dealer, financial
institution or other nominee who holds their common shares to
inquire about the applicable enrollment deadline and to request
enrollment in the DRIP. Full details of the DRIP plan and how
to enroll are available on Nevsun's website at
www.nevsun.com/investors/dividends/ or on
the Agent's web portal at
www.investorcentre.com/nevsun.
All shareholders considering enrollment in the DRIP should
review the terms of the DRIP and consult with their advisors as to
the implication of enrollment in the DRIP. The DRIP plan,
frequently asked questions and other related information is
available at
www.nevsun.com/investors/dividends.
Common Shares purchased under the DRIP will, at the
discretion of the Company, be issued from treasury, be purchased on
the open market through the facilities of the New York Stock
Exchange ("NYSE"), or be acquired through a combination
thereof. Common Shares issued from treasury are eligible for
a discount of up to 5% at the discretion of the Company.
This news release is not an offer to sell or a
solicitation of an offer of securities. Nevsun has filed a
registration statement relating to the DRIP with the U.S.
Securities and Exchange Commission that is available electronically
under the Company's profile from EDGAR
(www.sec.gov/).
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, 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
under our profile 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.