RESERVOIR MINERALS INC V.RMC

RMC Is Now In Takeover Territory

[psj567]

Freeport or some other producer is going to come in within 6 months and buy RMC's interest in the Freeport JV in the $7-8 range.

[thorgb1]

I suspect the same thing. Someone will come in with a bid to buy the high grade at a discount and get the porphyry for free. Working in our favour, though, is that we are cashed up and have enough money to run lean for a few years, but the BOD would have to look at any bids given the absolutlely terrible resource market. Who knows, maybe we could get a bit of a bidding war going, and at least get

[rob926]

I do not think that the investors or management would vote for that. Somewhere north of $10 maybe but I doubt it. We do not know what we have and wont until we drill a lot more holes and explore the area around the discovery for more pockets of high grade. I think management might be willing to go all the way and be a partner in the mine. I hope we are asking in the operating agreement that

[thorgb1]

I agree Rob, but who knows. As knotsmart keeps missing, our drop over rthe last couple of months is not an RMC issue, its an overall recession in the resource market. There are a lot of really good projects getting slaughtered right now, and we are in turn suffering, so when faced with the certainty of an offer as opposed to the uncertainty of the market in general, who is to say what would happen

[knotshure]

Your suffering because you are an Idiot . Or you run the mailroom at RMC and think your on the inside . Get out of the financial markets , you have zero financial education and the suffering will not end soon .

[rob926]

The market is throwing the baby out with the bath water and could care less since the market does not think we need the baby at all in the future. We can not control Freeport but a new discovery would put us in a whole new game to play. I'm glad we have 2 drills working. I would not object to a couple more since time could be of the essence if someone is going to try make a run for us on the

[cd673]

Another interesting strategy I have thought about is that they could drill a few holes into the deep porphyry on the JV land themselves, and then have a preliminary resource estimate done for that. It would cost more than a few million and hence has risk, but may generate appreciation again and show Freeport they don't have all the cards. Or just pay some government official to tell Freeport

[creaturecomphort]

Given the relatively low volume of this plunge in RMC there isn't much conviction that the price drop is based on fundamentals.  A buying opportunity is coming up.