RESERVOIR MINERALS INC V.RMC

Freeport

[psj567]

If Freeport had believed it could acquire RMC for less than fair value via a hostile maneuver it would have done so already. There are a number of obstacles in its way currently, two of which are 1) its status as an insider under SEC regulations because of the material information it likely possesses that it has not disclosed to RMC, its minority partner and 2) the leverage that RMC currently enjoys via control of the 100% owned permits and its likely on-the-ground relationship with the Serbian government that it has developed over several years time. The only way Freeport can make a hostile bid now is if it were to disclose all its material information first. Because RMC would then have to disclose it publicly virtually immediately, the share price very quickly would reflect the new information. Other potential bidders for RMC's interest in Timok would also know all that Freeport knows. Freeport would not and could not opt out of its obligation to sole fund to BFS in order to obtain the full 75% of the project as the additional 20% of the project it would lose to RMC if it did so is worth exponentially more than what it would cost RMC to fund its share of exploration and development costs. Freeport as the project operator may be a bully but it is not stupid. RMC's management team and Board have extensive global experience dealing with majors, M&A, mine builds, etc. Stated otherwise, Freeport is going to have to pay fair value for RMC. Because it is in Freeport's overall corporate interest to develop this project as soon as it can, it will reach a friendly agreement to take over RMC sooner rather than later. Then it can drill agressively, make disclosures and make further discoveries without fear of driving up the value of a minority partner who is free-carried.

[guiltedge1]

You state Re " FMC status as an insider under SEC regulations because of the material information it likely possesses" Do you happen to have a link to the relevant SEC regs? This was the issue Adrian Day mentioned last Monday at the San Francisco Mining show (when he suggested RMC as one of seven timely investments), as the explanation of why FMC stopped drilling - FMC need to process

[psj567]

No you don't. But you are not a publicly listed company on the NYSE, registered with the Securities and Exchange Commission. The citation to the controlling statute is Title 15 of the United States Code Section 77a et seq (The Securities Act of 1933 as amended through Public Law 112-106 (April 5, 2012)). The law was passed to insure that markets and investors receive timely, accurate and full

[rob926]

I believe your right that Freeport cannot do a hostile takeover without full disclosure. Due to their inside information it  is illegal for them to buy any stock to try start a hostile takeover. I do believe Freeport can make an offer at any time they want as a friendly takeover and it would be up to Reservoir to decide if it is a reasonable offer, and I do not believe they have to disclose

[psj567]

Nobody is ignoring your prior posts-- we just disagree with them. FCXi s not going to ask its Board for $3 billion to build this mine-- it does not have to. The CAPEX to build a mine for the high sufidation zone is $300-500 million with payback in 1-2 years, according to both the Scotiabank and GMP Reports published in the last 3 weeks. Further, the production from this mine will pay for the CAPEX

[thorgb1]

There's also the fact that things haven't been going very well for Freeport at Grasberg recently. Worker deaths, mine shutdowns, strikes, and militant threats have made it a very unstable situation down there. And then there's this: https://www.mining.com/fresh-threats-for-freeports-grasberg-copper-gold-mine-in-indonesia-14119/ Freeport's current contract to operate Grasberg

[rob926]

We hope Timok turns out to be Tier 1 scale but is not yet. GMP said it is a Tier 1 in the making but also said it was to early to tell and that the grade and size of the Porphyry will inevitably determine whether or not Timok has Tier 1 scale. They also said it is still somewhat still speculative at this stage. We need some more good holes! Hopefully we will get more results by the end of next

[psj567]

Rob, do you remember the character on SNL, Debbie Downer? Are you her brother? Second, are the two holes released tonight from the western most edge of the drilling good enough for you?

[rob926]

psj57 the holes are spectacular. I thought the stock was going to really jump when the market opened. I was surprised the stock jumped more each of the last 2 trading days than today. Being a bit frustrated with good news and that the stock  is not making a new high today prompted me to read the whole news release. After reading the whole release I learned that they announced 5 holes. Hole

[jezzanzuk]

Rob, I agree. Read the whole report this morning (when I should have been hard at work) The intercepts on 1341 and 1344 are angled way back where we have already intercepted high grades on holes 1213 and 1223. As such they are proving continuity of the high grade sulphidation zone, but they are not expanding the mineralistion already located and probably already priced in. The report masks the

[psj567]

Rob-- I am not attacking you-- just having a laugh with you not at you. The 3 holes you reference fall outside the Scotia model; the two monster holes increase Scotia's model tonnage by 22% at 5% CuEq. See Scotia's Note this morning. In other words, the experts were expecting these 3 holes not to show mineralization. It will be interesting to see once Scotia recalculates its DCF analysis

[rob926]

psj567 Thanks for the clarification that the 2 new holes were intended to intersect the ore body past the 3 dud holes they announced. It is still to bad the 3 holes were duds because they would have really expanded the footprint. Where are you getting your Scotia's info on Reservoir I'm having a hard time finding it? Do you have to be a client? While I was looking I did find info that

[jezzanzuk]

Rob, Summary at  https://www.investorvillage.com/uploads/8056/files/Scotia31212.pdf Posted by Runner on 12 November. There is a link to Scotia but requires a log in.

[thorgb1]

The summary is no good. You need to see the full report. The best part of the Scotia research note yesterday was the geologic models they included. They really drive home the scale of the project we have here, as well as the extent of the high grade and porphyry deposits present. Also this: ■ The new infill holes have increased the size of the material above a 1.5% CuEq cut-off in our resource

[rob926]

How can I get a copy?