Under the terms of the agreement, Zijin will acquire all of the issued and outstanding shares of Nevsun for C$6.00 per share in cash.
Nevsun board of directors chairman Ian Pearce said: “This premium transaction is an excellent outcome for our shareholders, and the result of a rigorous and competitive global process to generate maximum value for Nevsun’s outstanding assets.
“The all-cash consideration of C$6.00 per share better reflects the fundamental value of Nevsun’s mining and development assets, while also providing an appropriate change of control premium to our shareholders.”
Nevsun’s board of directors has also unanimously recommended its shareholders to accept the offer. The firm had rejected multiple offers made by Lundin citing them as inadequate, earlier this year.
In July, Canadian miner Lundin Mining made an offer to buy base metals company Nevsun Resources for about C$1.4bn ($1.07bn). The offer was Lundin’s second proposal in three months.
Nevsun Resources currently owns 100% stake in the high-grade copper-gold Timok Upper Zone and 60.4% interest in the Timok Lower Zone in Serbia.
Zijin chairman Chen Jinghe said: “Nevsun is an exceptional operator, with a strong focus on safe, efficient and sustainable mining practices. As the new owner we will continue that focus, and we look forward to working with stakeholders in Eritrea and Serbia to advance these mining and development assets.
“At the Bisha mine in Eritrea, our objective will be to further extend the life of the mine and explore for new deposits. At the Timok Project in Serbia we intend to rapidly develop the Upper Zone and bring it into production, and continue to advance and define the world-class potential of the Lower Zone.”
The offer is conditional on receiving approval under the Investment Canada Act and the Canadian Competition Act, approval by relevant authorities in China, as well as customary closing conditions.
