Nevsun Resources Ltd.: Bisha Construction Underway
Nevsun Resources Ltd., announce that the Bisha development project in Eritrea is well underway.
Preparation of the plant site has commenced by local contractor, Segen Construction, under the supervision of Bisha’s EPCM contractor, SENET of South Africa. Since early 2008 Bisha has ordered critical long lead items, expanded construction camp facilities, engaged local contractors, increased its project management capacity, commenced with local infrastructure, continued responsible social activity, secured significant procurement commitments and now has plant site earthworks underway. Commissioning is expected in Q1 2010.
During the last week of August a short-listed group of bankers visited the country to carry out due diligence in preparation for project finance. The bankers’ independent engineer, Micon International, has provided a positive report to Endeavour Financial, the project finance advisor to Bisha. Over a few days the banking group toured the Bisha site, Massawa port facilities and the capital city of Asmara and also met with a number of senior Government officials, who clearly demonstrated their support for the project. Nevsun is very encouraged by the consistent and clear message from Government in its support for the industry. We are very fortunate to have such a robust project to launch the mining industry in the country.
In developing the Bisha mining agreement the Government recognized the need to establish strong relationships that are attractive to the industry. Bisha is a significant beneficiary to the Government’s commercial approach, whereby the Eritrean National Mining Corporation has been contributing its proportionate share to fund the project. Nevsun looks forward to the continued support of the Government and advancing project finance with the consortium of bankers.