RESERVOIR MINERALS INC V.RMC

Eurasian Minerals Announces Royalty Interests on Timok JV

[rodneyc]

https://www.eurasianminerals.com/s/NewsandInfo.asp?ReportID=622170

[TheBigSmoke]

can anyone shed some light on this? tx

[rodneyc]

If find the Eurasian Minerals announcement confusing. However, it seems to imply that a smelter royalty was granted to Eurasian or carried through as part of the deal when RMC acquired it’s exploration properties, from its predecessor, at Timok. Perhaps someone can call in to RMC and get an explanation. I will try – if someone doesn’t beat me to it.

[TheBigSmoke]

Thanks...I agree, it was a very confusing press release.

[santee]

Do not read much  into this release, it is to boost Eurasian.The significance at this time is negligible. To far down the road , terms can be bought out you name it .Onward...

[rodneyc]

Agreed - but understanding what we have is important.

[Teatimenow]

The NSR was owned by Euromax Res, the previous owner of Timok, Eurasian (EMXX) was able to buy that for 200k$, which in a few years will likely look like the cheapest deal ever done. The market implies a value of over 1,05 Billion Can$ to this find, given, although free carried until BFS, RMC will end up with 25% of the JV project. The last time i saw such metrics was the voiseys bay discovery

[cd673]

If it is worth something, it is hard to believe RMC didn't buy it. Or maybe they just forgot about the outstanding royalty. A loose end they could have cleaned up even if just to prevent a release like this. Either way looks small and perhaps can be minimized via accounting for costs. Or buy it. As for Tommy Hillfiger the marketing blogger. Applying porphyry buyout prices to the high grade

[rob926]

1/2% of Reservoir's 25% is probably not worth chasing. Does anyone know what serbia is going to take. I think I heard somewhere around 5% smelting royalty plus taxes. I wonder if these cost are factured into the analysts models?

[rodneyc]

This is from the SRK Technical report available on Sedar. 3.2.3 State Royalties and Royalty Agreements The Serbian government raises a royalty of 5% net smelter return (NSR) for metallic raw materials (status as of 2011, Guide for Investors, Ministry of Natural Resources, Mining and Spatial Planning) and then there are additional royalties which may be due; these are individually negotiated for