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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

Comment by thorgb1on Jun 16, 2016 1:42pm
167 Views
Post# 24971626

RE:RE:RE:RE:RE:RE:Just Out

RE:RE:RE:RE:RE:RE:Just OutGreat discussions yesterday guys. Here's how my thoughts on how I see this playing out from here:

1. I think its likely the result is no longer in doubt. I'd have to think the timing and volume of the transaction by the "Chinamen" group, together with the wording of the release by RMC yesterday, indicates that the dissisent group bought the votes required to carry the NO vote; 

2. I don't believe that NSU will wait long to come forward with another offer; Why would they want to do that, and make RMC look at alternative funding, and maybe drive them closer to the dreaded "Chinaman" by accepting their funding proposal, or explore other funding options. We know there were multiple offers for funding on the table, so term sheets were likely exchanged and it would not be hard to dust those off again. Also, not sure what legal options NSU could pursue, RMC management did their part and encouraged shareholders to vote for the deal, they simply did not get get the support of their shareholders for the deal in its current form. Why would they want to potentially lose the property now after they put so much effort into it?

3. Other options could come forward. Parameters for what it will take to acquire RMC are now set. $8.50 - $9 probably doesn't cut it, but the the uncertainty of the ROFO is gone and it is clear what can now be acquired and what the magic number is likely much clearer now. I'd have to think that Lundin isn't divesting Tenke to sit on a mountain of cash, and we know that Paul Conibear stated publically that there isn't another asset like Timok available anywhere in the world, so they have to be watching this very closely. Others might also be interested again now that the ROFO overhang is gone and the time constraints are lifted.

Strictly my opinion, and it will be another interesting few weeks for sure.
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