Nevsun Resources (NYSEMKT:NSU) agrees to acquire Reservoir Minerals (OTCPK:RVRLF) for ~$365M in cash and stock, valuing Reservoir at ~C$9.40/share.
NSU says the combination creates a diversified mid-tier base metals company with a cash producing operating asset in Bisha, a high grade open pit copper-zinc mine, and 100% ownership in the upper zone of the Timok copper project in Serbia.
The deal allows Reservoir to exercise its right of first refusal on Freeport McMoran's stake in the Timok project, ending Lundin Mining's (OTCPK:LUNMF) previously announced acquisition of the stake.
Freeport McMoRan (NYSE:FCX) agrees to sell part of its stake in a copper-gold project in Serbia to Lundin Mining (OTCPK:LUNMF) for as much as $263M.
The current partners in the Timok project are FCX, operator of the project with a 55% interest, and an affiliate of Reservoir Minerals (OTCPK:RVRLF), and the deal is expected to close in Q2 if Reservoir declines to exercise a right of first refusal.
Lundin will acquire 100% of FCX's interest in the upper zone of the deposit and 28% of FCX's interest in the lower zone; Lundin will become the operator.
Under the terms of the preliminary deal, BHP could earn a 75% interest in Storm, located in Canada's Nunavut territory, if it spends a minimum of C$40M on exploration over the next few years.
BHP's move comes shortly after similar steps by rival Rio Tinto (RIO +1.6%), which signed deals involving the copper assets of Canadian junior miners Avala Resources (OTC:AVLRD) and Reservoir Minerals (OTCPK:RVRLF).