RESERVOIR MINERALS INC V.RMC

Icahn Making Dramatic Changes to FCX

[psj567]

Freeport announced the last two days that it has reduced the size of its Board, given Icahn 2 seats on the new Board, is preparing to divest itself of its oil and gas business and will focus on its copper mining business. Whether FCX chooses to develop Timok or sell it, RMC shareholders win either way. There can be little doubt that mid-tier producers like Lundin would love to buy 100% of Timok at the right price. There also is little doubt that a gold royalty company would love to buy the gold credits at Timok. Under the JV Operating Agreement, FCX has to disclose to RMC its 2016 Timok budget relatively soon. The next several weeks and months therefore ought to be very interesting. Remember, any sale of its interest inTimok by FCX  is subject to RMC's Right of First Refusal. One would imagine that any companies interested in buying 100% of Timok have already approached RMC. The only question is what price is someone willing to pay RMC for its interest in Timok such that it will result in a friendly acquisition. Any thoughts from fellow shareholders?

[cd673]

Glencore announced yesterday they are selling two small copper mines. Buyers firesale market. I guess the question for you PSJ is why would you want RMC to sell their interest in this market? As for Carl I doubt that Serbia is really even on his radar. He will be focused on much more pressing issues with Freeport. We are clearly in a wait-and-see mode and it is seemingly evident that Freeport is

[ILUVDIVIDENDS]

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[psj567]

 Timok is one of the few assets FCX can sell in this market and make some money. Why do you think they have been drilling the daylights out of this project the last several months with 8-9 drill rigs working?  Neither FCX or a purchaser is going to mothball this super high grade project and the bonanza of a huge and still open porphyry.