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Bullboard - Stock Discussion Forum RESERVOIR MINERALS INC V.RMC

"Reservoir Minerals Inc is engaged in the acquisition, exploration and development of mineral properties in Serbia, Cameroon, Gabon, Macedonia and Romania."

TSXV:RMC - Post Discussion

RESERVOIR MINERALS INC > Rio earn in
View:
Post by rob926 on Jan 27, 2016 10:53am

Rio earn in

Latest on Rio. Anyone have any comments that if Freeport sells Timok before they complete the BFS we should get to sell 45% ownership?

Reservoir Minerals Inc. ("Reservoir" or the "Company") (TSX VENTURE: RMC)(OTC PINK: RVRLF)(BERLIN: 9RE) is pleased to announce that its subsidiaries Tilva (BVI) Inc., and Global Reservoir Minerals (BVI) Inc., have been notified by Rio Tinto Mining & Exploration Limited ("Rio Tinto"), that the condition precedent has been met relating to the earn-in and joint venture agreement ("Agreement") signed between Rio Tinto and Reservoir. Under the terms of the Agreement, Rio Tinto has the option to earn in stages up to a 75% interest in Reservoir's four wholly-owned exploration permits in the Timok Magmatic Complex; Nikolicevo, Kraljevica, Coka Kupjatra and Tilva Njagra in Serbia ("Tilva Project"), by sole funding project expenditures of up to US$75 million (see Reservoir news release of November 12, 2015 for details).

Simon Ingram, President and CEO of Reservoir Minerals Inc., commented: "Reservoir is pleased to be continuing work on the four exploration permits of the Tilva Project, which will be solely funded by Rio Tinto via this Joint Venture during the sole funding period. The Timok belt has excellent exploration potential for large-scale copper-gold deposits and we look forward to building on Reservoir's experience and success in this belt with Rio Tinto."

 -- Rio Tinto will reimburse Reservoir's costs from the drilling started in September 2015, up to a maximum of US$500,000, which will form part of the Stage 1 earn-in expenditure. -- A Management Committee has been formed comprising of 2 representatives from each of Rio Tinto and Reservoir, which will meet to approve work programs and budgets on a quarterly basis, with quarterly cash calls being made in advance. -- Reservoir will be the Manager of the Tilva Project until such time as Rio Tinto exercises its right to assume the role. -- The focus of initial work will be data compilation, geological, geochemical, geophysical and structural modelling in order to prioritize targets for fieldwork and the next round of drilling.
Comment by cd673 on Jan 27, 2016 10:34pm
In my opinion in the simplest case a third party would offer to acquire all of freeports interest as well as the terms and conditions of the joint venture agreement and stand in their place. Whatever they offer for that Reservoir would be able to match that given their first right of refusal. Hence this scenario is unlikely because the potential buyer could spend a lot of money working with ...more  
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