MiningSee 21 January, 2019

Serbian mines prey for the largest international companies

Company Zijin, the majority owner of RTB Bor, became the new owner of the Canadian company Nevsun, which has investigation rights at the nearby Čukar Peki site.

It is one of the richest deposits of copper and gold in the world.

The Chinese company announced that the bid for the purchase of all issued shares and existing shares of Nevsun was successful. Nevsun’s shareholders have sold nearly 90 percent of the shares until final date, 28 December. Zijin has taken over all deposited shares and will pay for them 1.66 billion Canadian dollars (some 1.2 billion US dollars). Tanjug reports that Zijin has extended the period available to Nevsun shareholders to offer their remaining shares by the final date, expiring on 7 January.

“Shareholders offering their Nevsun shares in the extended period will receive the same amount of six Canadian dollars per share, which will be paid within three working days of the deadline,” the statement said.

Hence, the Chinese company succeeded in doing whatCanadian Landin failed to do last summer, whose USD 1.1 billion bid was rejected by the Board of Directors of Nevsun. They recommended that shareholders stay with the decision to reject a hostile bid to take over the Canadian competitor, but they advised them to sell their shares to the Chinese.

A future gold and copper mine, Čukar Peki, is obviously a serious prey for the serious international players. Indeed, there are very few companies that can swallow such a big bite, such as the opening of a mine at the Čukar Peki site. Because, according to a preliminary economic study, developedaccording to the method known as the Pea, the value of the Bor deposit is estimated at about seven billion dollars, Politika writes.

According to the estimates, the mining operations will bringSerbia five percent of the net revenue from the mineral resources fee, and an additional 15 percent from the tax.