San Diego, CA -- (SBWIRE) -- 03/20/2012 -- An investor in Nevsun Resources (USA) (NYSEAMEX:NSU) shares filed a lawsuit in the U.S. District Court for the Southern District of New York against Nevsun Resources Ltd. over alleged Violations of Federal Securities Laws in connection with certain financial statements over its Bisha mine in Eritrea.
Investors who purchased shares of Nevsun Resources (USA) (AMEX:NSU) between March 31, 2011 and February 6, 2012, have certain options and there are strict and short deadlines running. Deadline: May 14, 2012. AMEX:NSU stockholders should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on on behalf of purchasers of the common shares of Nevsun Resources (USA) (AMEX:NSU) during the period March 31, 2011 through February 6, 2012, that Nevsun Resources Ltd. Violated the Securities Exchange Act of 1934 by issuing materially false and misleading statements.
Nevsun Resources (USA) reported that its quarterly Revenue in 2011 increased from $53.53million in the first quarter to $134.66million in the second quarter and $185million in the third quarter and that its quarterly Net Income in 2011 increased from $11.80million to $35.29million to $53.32million.
Shares of Nevsun Resources (USA) (Public, NYSEAMEX:NSU) rose from as low as $0.41 per share in October 2008 to as high as $7.53 per share in the end of December 2010. Shares of Nevsun Resources (USA) were able to stay above $5 per share for the most part of 2011.
Specifically, the plaintiff alleges that Nevsun Resources Ltd. failed to disclose that its mining at the Bisha Mine resulted in a material amount of waste rock, rather than gold ore and that gold ore and gold from the Bisha Mine was materially less than the amount estimated by its model and defendants knew or had reason to know this based on data routinely collected from the Bisha Mine March 31, 2011 and February 6, 2012, that Nevsun Resources Ltd. was progressing through the ore body much more quickly than planned in order to maintain gold production at a rate that would not reveal to investors that the amount of gold at the Bisha Mine was materially less than its model; that Nevsun Resources Ltd. was aware that its model was materially defective because the actual amounts of gold mined at Bisha did not reconcile with its model previously disseminated to the investing public; and that Nevsun Resources Ltd. materially overstated its gold reserves at the Bisha mine.
Then on February 7, 2012, Nevsun Resources (USA) announced its 2012 outlook for planned gold production of 190,000 to 210,000 ounces from the Bisha mine in Eritrea.
Following the announcement multiple news sources reported that Nevsun Resources had cut its 2012 gold production guidance in half.
According to one article Nevsun Resources is matching what it mined in 2011 to what it had modeled in reserves a discrepancy began to emerge last year and that much of what Nevsun Resources had pegged as gold bearing ore turned out to be waste rock in the upper oxide zone at Bisha.
Shares of Nevsun Resources (USA) (NYSEAMEX:NSU) fell from $6.65 on February 2, 2012 to $4.17 on February 8, 2012.
Those who purchased shares of Nevsun Resources (USA) (AMEX:NSU) between March 31, 2011 and February 6, 2012, have certain options and there are strict and short deadlines running. Deadline: May 14, 2012. AMEX:NSU stockholders should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego