Nevsun not impressed with ESM- Rovina is an unpermitted, capital intensive ultra-low-grade asset that Nevsun previously determined to be highly unattractive;
- New ESM Bisha-focused stand-alone entity would face challenges raising capital to fund the ultra-low grade Rovina project.
-ESM is not an attractive partner - a junior, non-operating company with market cap less than one-tenth of Nevsun’s.
-ESM faced difficulty raising financing - most significant shareholder is junior mining promoter F&M.
-Rovina project is marginal - estimated capex US$509M would divert cash generated from Nevsun’s operations instead of being deployed to generate higher shareholder value in Bisha or Timok.
-Romania is historically a challenging jurisdiction for permitting mining projects.