RESERVOIR MINERALS INC V.RMC

Freeport Forced To Raise Another $1 Billion (US)

[psj567]

Freeport announced today it is going back to the open market to issue another $1 billion in stock to raise cash. This is the 2nd time in less than two months that its lenders and creditors have forced a $1 billion raise on the open market. The sale of Freeport's majority interest in Timok, either to RMC or a third party who would have already bought out RMC at a substantial premium, is inevitable---- and soon. Freeport is currently om life-support. RMC is in the driver's seat, a nice position to be in in any market and especially this one.

[rob926]

I wouldn't think the list of prospective buyers would be sure due to the depth and complexity of this deposit. One of the big pluses was having Freeport because of their experience. It sucks to have such a great deposit in such a rotten commodities market. 

[psj567]

Just the opposite. In a good market, Freeport would likely never put its interest in Timok up for sale. It is considering selling now because it has to-- and there are plenty of interested buyers. Precisely because RMC has a ROFR as to any sale, RMC's value is enhanced in this, a buyer's market. The road to buying Timok goes through RMC. As to Freeport's experience, the high grade zone