RESERVOIR MINERALS INC V.RMC

Nevsun

[Buckshot26]

This is an incredible deal for Nevsun. They get an unreal deposit for a song. They shed their country and single mine risk. They put money to work that they were just sitting on. They get instant longevity/sustainability from the lower zone. Their stock should move up, maybe significantly in the coming days-weeks so we could not have wished for a better deal. Who is to say we're still no longer "in-play"? The deal was structured with the 12 million share financing instead of a break-up fee. A $100million or whatever break up fee would have been more standard you would have to think. My guess is Reservoir negotiated the deal this way on purpose. We have the cash to exercise our ROFO. Now if Lundin or whomever were to come with a higher bid Nevsun might be quite happy to take $2 a share profit on the 12 million shares they just took down at $9.40. Once again we're in a win-win. Nevsun gets us and we end up with something I believe will rise from the already nice implied $9.40. Or Lundin decides they aren't going to walk away. This has been an almost three year ride. Lots of ups and downs, but in the end I couldn't be happier. Congratulations to all of you who held in there, it wasn't easy in this mkt. Best regards and glta, Buck

[psj567]

Great post Buck-- I couldn't agree more.

[cd673]

Good perspective guys thanks. I have to admit while I always thought there were a lot of potential deal shapes here I did not see this one coming at all. I think we come out with a little more of the high-grade a little less of the low grade and a chunk of something else we don't fully understand yet. It appears to be a very thoughtfully constructed deal that I think will get across the finish

[thorgb1]

I was curious about a break fee.....still wondering if one exists? I'm not certain we can assume that the financing component of the deal means no break fee, but you are right that the door is still wide open for someone to come over the the top if there is no break fee. Another "RMC either wins or they win" scenario......

[PumplyCrockford]

  Folks,   This may be a silly question but I'll ask anyway.  Will the combined companies fold into one publically listed ticker symbol like Nevsun’s listed on the NYSE or will both entities remain as publically listed tickers and trade separately on their own respective exchanges.   Honestly not real sure how this works as I've seen it done both ways and wonder what

[cd673]

It appears they will be separate during the interim. And then become one company when the deal closes in q2. I assume that means there will be one listing in Canada and one in the United States when closed. Anyone else?

[PumplyCrockford]

CD, That sounds about right.  I'm assuming Reservoir would fold up under Nevsun and the combined companies would just be listed as NSU on the big board and of course also on the Canadian exchange.

[Buckshot26]

Your assumption is correct.  Often when you see a deal like this where the acquirer is not dominantly bigger than the acquired they will write it up like a merger.  Make no mistake this is no merger, you will receive a re-org note giving you until such and such date to tender your rmc shares in exchange for 2x NSU plus a penny. After getting up to speed on the NSU story I'm convince

[Buckshot26]

Typical knee jerk reaction to sell Nevsun, give the mkt some time to realize how good this deal is for them and lets see where we are trading in a couple of days. I'm hearing there is a break up fee of $20million.  Still not much of a deterrence should Lundin not feel like walking away...