VANCOUVER, B.C. - Nevsun Resources Ltd. (TSX:NSU) says it's weighing the impact of a UN Security Council resolution on its Bisha gold, copper and zinc project in Eritrea but investors were quick to bid down the value of the Canadian company's stock.
Nevsun shares fell 38 cents or 12 per cent at $2.70 on the Toronto Stock Exchange on Thursday following the announcement, hitting their lowest levels since mid-June.
The Vancouver-based company said Thursday that it believes there won't be any direct impact on Nevsun or the Bisha project from an arms embargo, certain travel restrictions and asset freezes in the Dec. 23 UN resolution.
"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," Nevsun said Thursday.
The Eritrean government owns 40 per cent of the company developing the Bisha deposit, which was discovered in 2003 and entered the official development stage at the beginning of 2009.