RESERVOIR MINERALS INC V.RMC

Dundee research note....

[thorgb1]

For his part, Joseph Gallucci of Dundee Securities views the move as a positive for Nevsun, stating in a note to clients stating that the company has “put [its] cash balance to work (finally) to acquire a world class development project.”

More specifically, Dundee believes that the Timok project is a good fit for Nevsun. “Although it’s not in production, it’s only 5 years away from cash flow and is arguably similar to Bisha in terms of grade profile,” Gallucci added. Overall, Dundee reiterated its “buy, top pick” rating and $6.25 price target for Nevsun.

[Buckshot26]

TD has a pretty similiar note out: NEVSUN RESOURCES LTD. (NSU-T, NSU-A; C$4.22) BUY (Unchanged); Target: C$5.50 (Unchanged) Craig Hutchison, P. Eng. 416 982 3474 [e-mail] Derick Ma, CPA, CA (Associate) 416 308 3404 [e-mail]   On Sunday, April 24, Nevsun announced that it had entered into a definitive agreement to combine with Reservoir Minerals (RMC

[rob926]

If Dundee is right about the cost to Nevsun of $624mm it might be hard to tell their share holders that they are paying more than twice the price to get the other 25%. Especially since their price was only half with the rest comming from milestones. Also to beat the deal it would cost the more than the $624mm. Our deal with Nevsun is a big jump from Lundin's.