Eritrean news: VANCOUVER, BRITISH COLUMBIA, Sep 08, 2010 (MARKETWIRE via COMTEX) — Kin Communications Inc. is pleased to announce that its client, Nevsun Resources Ltd. /quotes/comstock/11t!nsu (CA:NSU 5.21, -0.06, -1.14%) /quotes/comstock/14*!nsu/quotes/nls/nsu (NSU 5.10, -0.01, -0.10%) , reached $1 billion market capitalization.
Nevsun shares hit a 52-week high of $5.45 pushing it over the $1 billion milestone. The milestone was reached following an announcement by the company in August that it had bought out a third party royalty on its 60% owned Bisha gold and base metals project in Eritrea, East Africa.
“We have had a fantastic year and we expect our growth to continue as we move from construction to commercial production in 2011,” said Cliff T. Davis, President and Chief Executive Officer, Nevsun Resources. “This rally in our share price and trading volumes demonstrates the confidence the market has in Nevsun and rewards the hard work we have put into the Bisha project in the Eritrea.”
Bisha will be the first modern mine permitted and built in Eritrea and will set the stage for subsequent development. Nevsun is well positioned to take advantage of the geologic potential in this area of East Africa through strong government relationships, zero debt and a number of very good exploration targets in the immediate area.
The Bisha mine is on track for commissioning in Q4 2010, and is expected to produce over 400,000 ounces of gold annually at a conservative operating cost of less than $250/oz during its first two years of operation.
“This is a significant achievement for Nevsun and we are proud to represent Nevsun in our portfolio of clients,” said Arlen Hansen, President of Kin Communications. “We continue to believe that significant upside remains for shareholders as the company trades at a much lower cash flow per share multiple than industry comparables based on first 5 years of projected Gold/Base Metals production.”
Current valuations do not consider upside associated with open-pit and underground potential at Bisha as well as regional exploration potential associated with Nevsun’s Eritrean land position.
Nevsun marks the second of Kin’s clients to reach the $1 billion market cap milestone.
Kin Communications celebrated Nevsun’s milestone along with Kin’s third anniversary. Kin is a full service investor relations firm specializing in mineral resource companies since Kin’s inception, clients raise over $438m since October 2007.
Kin Communications Inc.
Cristina Bittante, VP Marketing and Investor Relations