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Nevsun Finds a White Knight in Zijin With $1.41 Billion Deal

  • Chinese company just won separate deal to buy Serbian miner
  • Miners are chasing copper supply on outlook for tight market
Operations At Freeport-McMoRan Inc.'s Grasberg Gold And Copper Mine

Photographer: Dadang Tri/Bloomberg

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Zijin Mining Group Co. agreed to buy Nevsun Resources Ltd. for $1.41 billion to add copper assets in Serbia and Eritrea and enable the Canadian firm to ward off a hostile bid from rival Lundin Mining Corp.

Zijin, a Chinese gold and base metals producer, will pay C$6 per share in cash, trumping Lundin’s C$4.75 a share bid launched in July, the companies said Wednesday. Nevsun rejected repeated overtures from Lundin this year, saying that its offers undervalued the company and its assets.