TORONTO (miningweekly.com) – Nevsun Resources is still working on finalising the purchase price for a 30% stake that the government of Eritrea agreed to buy in the company's Bisha mine.

The company said in May that it expected the price would be settled by June 30.

The original agreement called for a process involving two independent international institutions, which have now submitted their draft reports, Nevsun said on Thursday.

“Nevsun and [Eritrean national mining company] Enamco are reviewing the results and will advise when the amount is finalized,” the firm said.

Nevsun agreed in 2005 to allow government-owned Enamco to buy an additional 30% in the project, over and above the free-carried 10% that it received under the country's law.

The price will be settled from after-tax cash flow from the mine, which will mean Nevsun receives the majority of profits until the price has been paid off.

Nevsun poured the first gold at Bisha in December and achieved commercial production in February.

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