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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 Meester954on Jun 16, 2016 2:48pm
139 Views
Post# 24971919

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

RE:RE:RE:RE:RE:RE:RE:Just Outthorgb1-

Absent some sort of Hail Mary, it seems that the proposal did not pass.  You nicely lay out the options.  I think NSU is hard-pressed not to sweeten the deal and take another run.  They need it to shed their "one-trick" pony status, move up to a far more stable jurisdiction and provide a catalyst to increase their multiple/share price.  They have room to move and provide a better equity ratio to RMC shareholders.  As far as the Chinese, I emailed the representative for the dissident group this morning with two items.  First off, I told him I thought they did a very nice job of laying out, in simple terms, the inequity inherent in the NSU deal.  Initially, folks were wowed by the $9.00 share price and gung ho for the deal.  Upon closer inspection, only having a third of Timok and Bisha seems like a very high price to pay for the cash on someone's balance sheet and a mine with somewhat limited life.

Second, I told him that from my view point, the deal that JingBao/XGC has/had on the table is a non-starter in its current form.  Unless these companies become far more transparent, the ony way I can see a deal happening with them is an all-cash deal for 100% of Timok (I would want to keep the rest of the assets in some type of spinoff).

I'm interested in hearing other's thoughts.  It should be an interesting Summer!
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