VANCOUVER, B.C. - Nevsun Resources Ltd. (TSX:NSU) says it plans to raise $117 million in a private placement aimed at developing its Bisha gold and base metals mine in Eritrea.
The private placement of 52 million shares at $2.25 per share is scheduled to close on or before Feb. 19. Other details were not given.
"The company is confident the funds from this private placement, together with its existing cash and the ongoing one-third contribution by the state of Eritrea to Bisha will be sufficient to see the Bisha project through to cash-positive operations," Nevsun said in a news release.
"The funding arrangements are in excess of estimated costs to complete so as to provide a reasonable cushion in the event of unforeseen events," it said.
The government-owned Eritrean National Mining Corp. has "reliably" provided its one-third contributing share of financing to Bisha as the project has progressed, Nevsun said.
Last month, Nevsun described the project as "very well advanced" approaching 50 per cent complete with costs now estimated to be about $260 million, close to the original budget of approximately $250 million.
Nevsun stock was up 12 cents or more than 5.6 per cent at $2.24 at midafternoon Thursday on the Toronto Stock Exchange in trading that saw more than 4.2 million shares change hands.