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November 14, 2007
THIRD
QUARTER FINANCIAL RESULTS
Nevsun Resources Ltd., (NSU-TSX/AMEX)
(“Nevsun”) wishes to announce its results
for the third quarter of 2007. Complete
details of the September 30, 2007 interim
financial statements and Management's
Discussion and Analysis can be found on the
Nevsun website at
www.nevsun.com as well as on SEDAR at
www.sedar.com and EDGAR at
http://www.sec.gov/edgar/searchedgar/webusers.htm.
The Company’s working capital position at
September 30, 2007 was approximately US$9.1
million. In mid October the Company raised a
further Cdn$15 million through a
non-brokered private placement.
The net proceeds
from this offering are planned to be used
for working capital and to fund the early
stages of construction of the Bisha Project,
after conclusion of a mining agreement and
receipt of a mining license from the
Government of Eritrea.
The loss for the quarter from continuing
operations was US$2 million as compared to
US$2.2 million for Q3 2006 and $6.9 million
for each of the nine month periods ended
September 30, 2007 and 2006.
Continuing operations are focused on
Nevsun’s high-grade gold/copper/zinc Bisha
project in Eritrea, in the Horn of Africa.
The Feasibility Study and Social and
Environmental Impact Assessment for the
Bisha Project have been completed and the
Government of Eritrea has demonstrated its
strong support for the Project. In October
Nevsun and the State Mining Corporation
entered into an agreement whereby the State
has agreed to purchase a 30% contributing
interest at full fair value (details in
press release dated 29th October,
2007) and the Government has advised that it
expects to conclude a mining agreement very
soon.
On September 5, the Company announced the
suspension of its mining activities in Mali.
The loss from discontinued operations for
the quarter was US$2.7 million and US$6.1
million through September 30, 2007 as
compared to $5.5 million for Q3 2006 and
$11.7 million for the 9 months ended
September 30, 2006. The Company is actively
engaged in the sale of the Mali operations
with the assistance of Genuity Capital.
Subsequent to the end of the quarter, the
Company completed the sale of its Kubi
property in Ghana to PMI Gold Corporation (PMV-TSX-V).
Details of the sale are outlined in the
Company’s September 17, 2007 press release.
The Kubi property hosts a former open pit
operation that was mined by AngloGold
Ashanti during the period between 1999 and
2006 whereby Nevsun received royalty
payments from Ashanti until early 2006.
Forward Looking Statements: The above
contains forward looking statements about
planned use of proceeds, expected conclusion
of an Eritrean mining agreement and sale of
Mali operations. Forward-looking statements
are statements about the future and are
inherently uncertain, and actual
achievements of the Company or other future
events or conditions may differ materially
from those reflected in the forward-looking
statements due to a variety of risks,
uncertainties and other factors, including,
without limitation, those described in the
Management Discussion and Analysis of the
Company. The Company’s forward-looking
statements are based on the beliefs,
expectations and opinions of management on
the date the statements are made and the
Company assumes no obligation to update such
forward-looking statements in the future.
For the reasons set forth above, investors
should not place undue reliance on
forward-looking statements.
| NEVSUN
RESOURCES LTD.
“John A. Clarke”
Dr. John A. Clarke
President & Chief Executive Officer
Nsu07-14.doc |
For further
information, Contact:
Judy Baker (416) 786-7860
Nevsun (604) 623-4700 or
1-888-600-2200
e-mail:
nevsuninfo@nevsun.com
Website:
www.nevsun.com |
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