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RESERVOIR MINERALS INC V.RMC

"Reservoir Minerals Inc is engaged in the acquisition, exploration and development of mineral properties in Serbia, Cameroon, Gabon, Macedonia and Romania."


TSXV:RMC - Post by User

Post by psj567on Aug 27, 2015 10:26am
112 Views
Post# 24055714

The Weaker FCX, the More Valuable RMC's Interest in the JV

The Weaker FCX, the More Valuable RMC's Interest in the JVThe Serbian government, which is starving for funds, is not going to let FCX sit on the Timok Project. FCX is going to have to timely develop the project or risk losing it. Because RMC owns the Right of First Refusal as to any third party purchase of FCX's interest in the Timok JV, nobody is going to negotiate a deal with FCX to buy its interest unless and until Freeport or the third party first has purchased RMC's interest in the project. RMC, RMC's Management and RMC shareholders could not be in a better strategic position at the moment. That is, market weakness and commodity price weakness are actually enhancing the value of RMC. Whoever purchases RMC's interest, FCX or a third party, is going to have to pay a hefty premium to acquire RMC's interest.
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