T, More news: VANCOUVER , May 3, 2016 /PRNewswire/ - Nevsun Resources Ltd.(NSU) ("Nevsun") is pleased to announce that in connection with the proposed combination agreement between Nevsun and Reservoir Minerals Inc. ("Reservoir"), as announced on April 24, 2016, Reservoir has closed the right of first offer ("ROFO") with Freeport International Holding (BVI) Inc. ("Freeport") on the Timok Copper-Gold Project. Closing the ROFO consolidates 100% ownership of the Upper Zone with Reservoir. Reservoir became the operator on the Timok Project concurrent with the exercise of the ROFO. Closing the US$135 million ROFO is the first step in the previously announced combination of Nevsun and Reservoir.
Nevsun has entered into a secured loan arrangement with Reservoir to provide a further US$850,000 to Reservoir to fund the May 2016 operating expenses at the Timok Project. The indebtedness will be secured by a cash collateral agreement on customary lending terms. Nevsun will provide further updates on the 2016 work program at the Timok Copper Project after the key transaction meetings of operatorship with Freeport are completed later this month.
