Dividend Reinvestment Plan ("DRIP")
A dividend reinvestment plan (the “Plan”) is available to eligible shareholders. The Plan provides a convenient and cost-effective way for eligible shareholders to acquire additional common shares of the Company by reinvesting cash dividends paid on their shareholdings. Commencing with the Q3 2016 dividend and continuing unless notified otherwise by the Company, funds reinvested under the Plan may be by way of Treasury Acquisitions (as defined in the Plan), Market Acquisitions (as defined in the Plan) or a combination of Treasury Acquisitions and Market Acquisitions. Common shares issued as part of a Treasury Acquisition for distribution under the Plan may, at the discretion of the Company, be purchased at a discount of up to 5% of the Average Market Price (as defined in the Plan) that the Company may determine in its sole discretion to apply to Treasury Acquisitions. Common Shares acquired through Market Acquisitions for distribution under the Plan will be purchased at the prevailing trading price.
For more information, please refer to the materials below, or contact the Plan Agent, Computershare, at the link below to register. Shareholders should read the dividend reinvestment plan carefully before making any decision to enroll.
Dividend Reinvestment Plan Materials
You are a registered shareholder if the common shares are registered in your own name. Registered shareholders can join the Plan by completing the enrollment form available here and sending it to Computershare Trust Company of Canada who is the administrator of the Plan (the “Plan Agent”). To access Computershare’s self-service web portal, click here.
If your common shares are not registered in your name but are registered in the name of a nominee such as a bank, trust company, investment dealer or other intermediary, you may only participate in the Plan if you (1) transfer your common shares into your own name and enroll directly in the Plan as a registered Shareholder; or (2) arrange for your nominee to enroll in the Plan on your behalf by contacting your nominee.
Important Notice to U.S. Beneficial Shareholders
The Depository Trust Company (“DTC”) terminated its participation in Dividend Reinvestment Plans for Canadian securities for all events announced with a record date beyond March 31, 2014. As a result, a U.S. beneficial shareholder who wants to participate in the Dividend Reinvestment Plan must either become a registered shareholder or transfer their shares to a Canadian broker. Shareholders should note that they may incur costs in connection with effecting such transactions and should consult with their broker before taking any action.
To become a registered shareholder, U.S. shareholders must contact their U.S. broker to request that their Nevsun shares be withdrawn from their account and issued in their personal name and address (this changes the shareholder’s status from a beneficial shareholder to a registered shareholder). Upon receiving these instructions, the U.S. broker will request this withdrawal and issuance of shares via Nevsun’s registrar and transfer agent, Computershare Investor Services Inc. Once the transfer is complete, the new U.S. registered shareholder may enroll with Computershare to participate in the Dividend Reinvestment Plan at the address and telephone number noted here.
To transfer shares to a Canadian broker, U.S. shareholders must contact their U.S. broker to request that their Nevsun shares be withdrawn from their U.S. account and deposited with a Canadian broker. Once deposited with a Canadian broker, shareholders may enroll through such Canadian broker.
Please see the following link for the official notice from DTC, including additional information for beneficial holders who want to participate in dividend reinvestment (Document #0064-14), click here.
United States Shareholders
The Company advises U.S. shareholders to please refer to Nevsun’s prospectus relating to the Plan filed on Form F-3 with the Securities and Exchange Commission on September 19, 2016, which can be accessed under the Company’s profile at www.sec.gov.
Non-Canadian Resident Shareholders.
Shareholders resident outside of Canada and the United States may participate in the Plan unless prohibited by the law of the country in which they reside. Cash dividends to be reinvested for Participants resident outside of Canada will be reduced by the amount of any applicable withholding taxes, as determined in the sole discretion of the Company. Neither the Company nor the Plan Agent will have any duty to inquire to the residency status of the Shareholder, nor will the Company or Plan Agent be required to know the residency status of a Shareholder, other than as notified by a Shareholder. Notwithstanding the foregoing, as part of the enrollment process, the Company or the Plan Agent may request additional information or confirmations, including an opinion of legal counsel, from such non-Canadian resident Shareholders to ensure that enrollment is not prohibited by the law of the country in which they reside.
Sale of Common Shares held on Account under the Plan
A participant in the Plan may also request the sale of Common Shares held under the Plan by notifying the Plan Agent as set out in the Plan. In this event, the Agent will sell such shares through a broker-dealer designated by the Company from time to time. The participant will be charged a commission by the broker-dealer, which commission will be deducted from the cash proceeds of the sale to be paid to the participant. The Plan Agent will deliver the net proceeds of the sales after deducting brokerage commissions and transfer and withholding taxes, if any, to the participant.
Termination of Participation in the Plan
Participation in the Plan may be terminated by a registered participant by duly completing the termination portion of the voucher on the reverse side of their statement of account and delivering it to the Plan Agent within the time set out in the Plan or by following instructions at the Agent’s Investor Centre web portal, www.investorcentre.com/nevsun.
Computershare Trust Company of Canada will administer the Plan. To access Computershare’s self-service web portal, click here.
All shareholders considering enrollment in the dividend reinvestment plan should carefully review the terms of the Plan and consult with their financial advisors as to the implications of enrollment.
As part of the Company's long-term strategy to maximize shareholder value, Nevsun commenced paying an annual dividend in 2011, shortly after declaration of commercial production at the Bisha mine. Currently, the Company is paying a quarterly dividend of US$0.04 per common share or US$0.16 per share annually. The full dividend history of the Company is noted in the table below.
Nevsun's Board of Directors periodically reviews the amount of the dividend and is subject to change depending upon the earnings of the Company, capital requirements, comparable yields and other relevant factors existing at that time.
|Dividend Per Share||Record Date||Payment Date|
|$0.04||September 30, 2016||October 14, 2016|
|$0.04||June 20, 2016||July 8, 2016|
|$0.04||March 31, 2016||April 15, 2016|
|$0.04||December 31, 2015||January 15, 2016|
|$0.04||September 30, 2015||October 15, 2015|
|$0.04||June 30, 2015||July 15, 2015|
|$0.04||March 31, 2015||April 15, 2015|
|$0.04||December 31, 2014||January 15, 2015|
|Increased Dividend 14%|
|$0.035||September 30, 2014||October 15, 2014|
|$0.035||June 30, 2014||July 15, 2014|
|$0.035||March 31, 2014||April 15, 2014|
|Changed dividend to quarterly at same rate|
|$0.07||December 31, 2013||January 15, 2014|
|$0.07||June 28, 2013||July 15, 2013|
|Increased Dividend 40%|
|$0.05||December 31, 2012||January 15, 2013|
|$0.05||June 30, 2012||July 16, 2012|
|$0.05||December 31, 2011||January 15, 2012|
|Increased Dividend 67%|
|$0.03||June 30, 2011||July 15, 2011|
Nevsun dividends qualify as an 'eligible dividend' for Canadian income tax purposes.