RESERVOIR MINERALS INC V.RMC

Did NSU overpay?

[digipic]

Reading this board, it sounds like RMC shareholders are complaining.  NSU has paid or committed to a $1 billion transaction.  $535 million upfront in share dilution and cash...additional cash of around $150 million or so, will have to be paid as per agreement between Freeport and Lundin....NSU had to match the offer...thus the initial commitment is between $600-700 million.  Additionally NSU is stuck for funding the project, which is estimated at least another $50 to $100 million in the next couple of years....then they have to build the mine...RMC, published a half-as*ed PEA showing $225 million to build the mine...my guess is the Feasibility study in a couple of years will show that the outlay to build the mine will be between $400 to $700 million for the 1st phase...

That;s the way I see it...

[Demon11]

Yur right -- some people in this board are a bit confused about the valaue situation and the fact there were not a lot of choices that would provide the immediate return they are now getting. When Cu prices go up - and they will since India is already stepping into the China 'gap' - this will have a different look - Th equestion of opening a moine is irrelevant at this point nor an

[thorgb1]

No major will take a run at NSU given the instability that Eritrea brings with it. They have done a great job with maximizing return on that asset, but if a major wants in they will make a run at RMC before the deal closes. I expect if anything is going to happen with  major coming over the top, we will see it before the end of May. I still think there is about a 50% chance of that happening,