RESERVOIR MINERALS INC V.RMC

Question? And be nice on your answers!

[rob926]

Has anyone seen any comments from analysts as to what they think the share price would be if we do not exercise the ROFR? The reason I ask is based on the Lundin purchase price our 25% would not be worth anywhere near our market cap. I know they have to delivery a BFS to get the 75% share but if this is going to be a mine then it will happen. At Lundin's deal price wouldn't that make our value at around a 100 Million? No need to slam me this is a legitimate question since not exercising is a possibility. I know we have lots of options and hope we can execute a great one for us shareholders but it might not happen. The deal is still good since Lundin will speed up the project but we could have some near term price drop on that kind of news. I would think we have some investors who have jumped in on the speculation we will do some big deal and I for one hope we are all right on that point. If we are not and Lundin takes the deal then I would guess the short term traders will bail and drop our stock price. Then we will be back to waiting for more good drill results in what is still a bad commodity environment.

[cd673]

Rob, this is a fair question. Life is all about risk and reward.  If they don't close a deal along the lines of what we have talked about on this board, to increase their stake, then I'd expect a sharp pull back in price.  While our real 'value'  per share would still be in the 7.50 to 9.00 depending which analyst you believe, we would trade at a deep discount again.

[rob926]

cd673 thank you for your well thought out answer. It will be interesting at the open today to see if the market liked the latest great porphyry hole and the 1,400 by 600 meter foot print. GLTA

[cd673]

None of the deep stuff has been priced into the stock at all to date in spite of FCX holding onto it at a steep cost (by selling high grade cheap). I don't see that changing in next few weeks. All Mr market cares about is a deal getting done and and ownership increase. Cross our fingers and let's hope that happens as we believe it will. GLTA

[psj567]

Agreed. One cannot measure RMC's value or worth by extrapolation of LUN's bid. Lundin's bid is outright theft of the project from Freeport. Short of an outright acquisition by a major such as RIO of RMC beforehand, RMC likely will exercise its ROFO funded exclusively by debt. Having consolidated ownership of Cukaru Peki with no dilution, RMC will be valued significantly higher than its

[rob926]

Reservoir had several months to start working this deal even before Lundin's deal with Freeport was complete and the ROFR started. If they were going to raise the funds to do the deal I would have thought that would have been announced by now. Either the money was available or not. Doing a deal is what takes time. I would think if this turns out really good for us Lundin would be unhappy but

[psj567]

Rob, do us all a favor and sell your shares now instead of whining repeatedly.

[rob926]

Your problem is you can't stand looking at this from all angles. You are just a Rah Rah Rah guy. Well things can go down many ways and looking at all possiblities is prudent. Be a realist in this market nothing is a slam dunk deal  the poor deal Freeport got is a perfect example. I did noy say anything that was not a possibilityit is  just not another we are going to the moon and a

[psj567]

Roberta?

[thorgb1]

That was pretty funny. Rob, you have to admit, you do get negative pretty regularly for a guy who's on a ten bagger with RMC. Sit back and relax man, either we will be partners with Lundin, we will own the entire upper zone and a lot of the porphyry, or we will be acquired within the next 2 weeks. Any of the above makes us worth more then $7 in 14 days. 

[Buckshot26]

Great post as usual thorgb1.   Sorry to state the obvious but there are only 4 options here.  1. A buyout. 2. Lundin's deal goes through. 3. We get a loan and exercise our first right of refusal. 4. We do an equity financing and exercise our first right of refusal. I guess you can throw in 5. some combination of 3 + 4. Not quite binary, but manageable.   My wish

[cd673]

I think if they come in as proposed it would have to include a bigger share for us of the high-grade as well as a clear commitment to finance the development of the project. Otherwise it would not be a win from us holding the right of refusal and I think it would be very negative for the shares short-term while long term it would be a positive. My guess is someone like Rio will not come in because