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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 Nov 18, 2015 11:24pm
164 Views
Post# 24303782

Rio's JV Deal with RMC: Next up, Buying 100% of Cukaru Peki

Rio's JV Deal with RMC: Next up, Buying 100% of Cukaru PekiWith its recent JV deal with RMC, Rio has locked up most of the Serbian mineral belt district that RMC had so fortuitously staked out beginning years ago. IMO, this is a precursor to Rio buying out both Freeport's and RMC's interests in the Cukaru Peki deposit. Freeport as a company is mortally wounded and bleeding like a stuck pig. Icahn will soon stem the bleeding by making Freeport sell off many more assets. Rio knows this and has positioned itself to scoop up Freeport's interest in Cukau Peki, likely sooner rather than later. It then will have control of the entire belt, an area that several well-respected geologists believe is one of the most prospective minerals district left in the world. Either in conjunction with negotiations with Freeport, or beforehand, Rio will pay a nice premium to RMC for its ownership interest in Cukaru Peki and its right of first refusal as to any sale by Freeport. Rio can withstand the current downturn part of the commodities cycle and will flourish when the cycle turns as it inevitably will. Freeport and its current balance sheet cannot-- it has to sell off significant assets to survive. All of this inures to the benefit of RMC shareholders.
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