From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Thu Dec 24 2009 - 18:02:51 EST
Nevsun says it doesn't believe sanctions will affect the company or its
Bisha project in Eritrea
Canada Hot Stocks: Nevsun, Priszm, Tethys, Electrovaya
Among the companies whose shares are making notable moves in Thursday's
session are Nevsun Resources Ltd. (NSU.T), Priszm Income Fund (QSR.UN.T),
Tethys Petroleum Ltd. (TPL.T) and Electrovaya Inc. (EFL.T).
Nevsun (C$2.85, -C$0.23, -7.5%) said it doesn't believe the sanctions placed
on the State of Eritrea by the U.N. Security Council will affect the company
or its Bisha project in Eritrea. However, it said it's uncertain how the
sanctions could affect Bisha debt facilities. The sanctions include an arms
embargo, certain travel restrictions and certain asset freezes.
Priszm (C$0.98, C$0.09, 10%) has sold its food-processing facility in
Toronto for C$11.5 million. Proceeds will be used to upgrade 75 of its
restaurants.
Tethys (C$0.80, C$0.06, 8.1%) has received final government approval for the
Akkulka gas production contract for the Kyzyloi/Akkulka gas development in
Kazakhstan.
Electrovaya (C$0.85, C$0.09, 12%) swung to a fourth-quarter profit of 1 cent
a share from a loss of 1 cent a year earlier. Revenue jumped to $1.4 million
from $654,000. (The Wall Street Journal)
UPDATE 1-Eritrean turmoil weighs on Nevsun shares
* U.N. imposes sanctions on African country
* Nevsun stock tumbles more than 14 percent
TORONTO, Dec 24 (Reuters) - Nevsun Resources (NSU.TO) insisted on Thursday
its Bisha gold project in Eritrea would proceed as planned despite United
Nations sanctions against the African country.
Nevsun shares tumbled more than 14 percent following the sanctions, despite
its assurances the U.N. actions - including travel restrictions and asset
freezes - should not have any direct impact on the company or the project.
However, the Canadian miner could not say whether they would "indirectly"
affect its Bisha debt facilities.
The company also said it is already in talks with the project's various
stakeholders and is working on alternative financing sources. It said the
project remains on track to start operations in late 2010.
Shares of Nevsun, which have risen some 300 percent in the past year, were
off 7.5 percent at C$2.85 on the Toronto Stock Exchange on Thursday morning,
after falling as much as 14.3 percent to C$2.64 earlier in the session.
The U.N. Security Council imposed the sanctions on Wednesday, saying Eritrea
was aiding Islamist rebels trying to topple a fragile U.N.-backed
transitional government in nearby Somalia. The sanctions also include an
arms embargo. [nN23147693]
Eritrea has repeatedly denied the allegations.
The Bisha mine, in which the Eritrean government has a 40 percent stake,
lies to the west of the capital Asmara, towards the border with Sudan.
Bisha's 27 million tonnes of ore is believed to contain 1 million ounces of
gold, 700 million to 800 million pounds of copper and 1 billion pounds of
zinc.
($1=$1.05 Canadian) (Reporting by Scott Anderson; editing by Rob Wilson)
-Reuters
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