RESERVOIR MINERALS INC V.RMC

Have to wonder....

[thorgb1]

There seems to be low volume selling pressure anytime we look to be getting a bit of momentum above $7. I have to wonder if this is being orchestrated by an acquirer or a lender to control the price in advance of an offer or closing date. Agreements such as this are generally done at "XX%" above the closing on a certain day or a 30 day average, so keeping the price in a box gives  the party some price certainty.

[cd673]

I think the PEA document could well have been a condition for financing whether debt or equity. I do agree the price seems very tightly range-bound but that could also be attributed to the simple fact that any time there is news there will be sellers. Especially given that it appears an acquisition is less likely at least in my opinion. Important news is still to come no doubt as doing nothing

[cd673]

Lundin has been strong the last week too. Could be anticipation they nail something down with RMC or general commodities market uptick. Thoughts?

[rob926]

One thought that comes to mind since Lundin said talks with Reservoir Minerals were going well is a deal that is a win-win for everybody. If Lundin turns out to be the preferred partner for furthering this project we could use our ROFR to negotiate buying 25% of the high-grade at Freeport's low selling price. Because of the ROFR we might be able to also negotiate that the responsibility is

[thorgb1]

In my opinion, there will be no partial deals done. We will either match the Lundin deal, or we will be acquired by an operator. I don't believe there is any other option that makes sense based on the data in the PEA, and I'm 99% certain that Lundin will not get the property. If the former occurs and we end up with the project and RMC remains as a corporate entity, I think there are some

[rob926]

Hey thorgb1 and CD673 what do you guys think of the latest news? If true looks like raising funds did not work out. We all thought Freeport was selling cheap but in reality it might just have been what the market is willing to pay for a discovery that does not have a scopping study let alone a BFS yet. Freeport really hurt this discovery when they stopped drilling for a year and tried to bully us

[goldminer57]

Again, where is the actual press release. How do we know this is true. It is not on Nevsun web page. Question, is this really true?

[rob926]

Here is a link I posted earlier from someone who claims to have taken a screen shot before it was pulled down.  https://incakolanews.blogspot.com/2016/04/nevsun-nsuto-and-reservoir-minerals.html

[cd673]

Rob it is a little bit hard to tell what will happen from this news and what the impact will be to our share price. Overall I think it is a positive development as it lets us stay in the game much longer than a simple acquisition would do. And therefore we can see the long-term economic Potential from the upper Zone and the lower Zone which may not have been the case if another larger partner had

[rob926]

Thanks CD I'm sure it was the best deal they could strike in this market. Their market cap is less than a billion so the upside of our project will be a lot more meaningful than if the same deal was struck with Lundin. It would have been nice to get a performance bonus of shares for the lower zone if it proves to be a whale. Unless Nevsun shares drop in the morning I would think we should open

[cd673]

Agreed it would have been nicer to see a kicker on the lower zone. But overall you're probably right about where we end up tomorrow. At least hopefully that's the case. It may take the market a while to digest the news. GLTA.

[cd673]

The other key point that both companies will need to sell together to the market is that they have a massive amount of potential to improve their Market capitalisation perhaps to 2 billion or more depending on which way the market goes for commodities. That will be a key part of the sales pitch this week I'm sure.

[thorgb1]

Interesting deal. All RMC assets transfer to NSU, and we get 2 NSU shares for every RMC share, based on a nominal value of $9.40 per share as at Fridays close. We can get significant upside though if NSU's share price appreciates, and I don't think that is out of the question for them in picking up this significant asset. The NSU team has done an amazing job with the Bisha asset in Eritrea

[rob926]

I will hold some as well. Lundin has to be bummed tonight since we got more value for our 25% than Freeport did from their 75%. 

[cd673]

Rob we've discussed this before on the board there are infinite deal possibilities. But I don't get is why you would want Reservoir to pay for something they should get for free. Think about it. And if you want only Thor's opinion and send an email.

[rob926]

CD not sure what you meant we should get it for free. Nothing is for free. My point was more in the vain if it is going to be hard to raise enough for a full buyout a partial at Freeport’s price would add value to what we have. This could be a tough market to raise reasonable funding pre BFS. I don’t know what Reservoir’s opinion of Lundin is about them being the operator. Getting a deal with more