Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Nevsun Resources Ltd. (“Nevsun” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit has been filed in the U.S. District Court for the Southern District of New York by another law firm on behalf of purchasers of the common stock of Nevsun Resources Ltd. (AMEX: NSU) between March 31, 2011 and February 6, 2012, inclusive (the “Class Period”).
The complaint alleges that Nevsun and certain of its officers and/or directors (“Defendants”) misrepresented and/or failed to disclose that: (1) Nevsun materially overstated its gold reserves at the Bisha mine; (2) Nevsun's mining at its Bisha Mine resulted in a material amount of waste rock rather than gold ore; (3) Defendants knew or had reason to know that the gold ore and gold from the Bisha Mine was materially less than the amount estimated by the Company's published model; and (4) Nevsun was progressing through the ore body much more quickly than planned in order to maintain gold production at a rate that would conceal the fact that the amount of gold at the Bisha Mine was materially less than the Company's model.
On January 10, 2012, Nevsun issued a press release announcing fourth quarter operating highlights. The press release included the following statement: “Bisha Mine continued to operate in excess of plan for gold recovery and maintained planned milling and gold production rates in Q4.” Yet less than one month later, on February 7, Nevsun cut its 2012 production estimates approximately in half, telling investors that the “resource estimate used for mine planning over-estimated gold in portions of the Bisha Main oxide mineralization.” The price of Nevsun shares fell from $6.34 to $4.40 on February 7, 2012.
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