2009 Press Releases
December 24, 2009
UN Security Council Sanctions
Highlights
- Sanctions on the State of Eritrea include arms embargo, certain travel restrictions and certain asset freezes
- As yet no known impact to Nevsun or Bisha Project
- Nevsun will monitor any new developments and any impact to its debt financing
Nevsun Resources Ltd. ("Nevsun") (TSX:NSU)(NYSE Amex:NSU) announces that the United Nations Security Council has on December 23, 2009 passed a resolution to place sanctions on the State of Eritrea in regards to an arms embargo, certain travel restrictions and asset freezes. A separate sanctions committee is responsible for designating the actions and parties to which the resolution applies. The implementation of this process may take some time and the details are not yet known. The resolution will be posted at the UN Security Council web site http://www.un.org/Docs/sc/unsc_resolutions09.htm.
Nevsun has been operating in Eritrea for over ten years and has developed a strong relationship with the government of Eritrea. The State is a partner in the development of the Bisha mine and it has been a strong supporter of a responsible mining industry within the country. The State has honored all of its commitments in our business arrangement and Nevsun is very pleased to have the State as its partner.
Nevsun believes that these sanctions should not have any direct impact on the Company or its Bisha project in Eritrea as the Company is focused solely on the development of the Bisha project. It is however uncertain whether these sanctions could indirectly impact the Bisha debt facilities announced in July 2009. The Company is already in discussions with stakeholders to evaluate that possibility and has contemplated alternative finance sources if the sanctions do eventually negatively impact the debt facilities.
The Bisha project continues to be on track to commence operations in late 2010. Updates on the project will continue to be provided periodically.
Forward Looking Statements:
The above contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.
NEVSUN RESOURCES LTD.
Cliff T. Davis
President & Chief Executive Officer
For further information, please contact:
Kin Communications
Tel: 604 684 6730
Toll free 1 866 684 6730
Email: ir@kincommunications.com
Website: www.nevsun.com
