The company already made an announcement that it would be pursuing other projects and stacked the BOD with the people who were going to find them. Any new project will require financing and thus massive dilution to shareholders of CDCH. This is public knowledge. To avoid our current holding in 5% of AMC from being diluted a spinoff is required. Either private or public. None of this is new information yet you defer to “let’s do nothing and the dividends will take care of themselves.” This is not a viable option going forward so some folks, who are a bit more “proactive” are exploring the best foot forward.
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Last public communication was that the original project was scrapped. If there is another project under consideration it has not been officially announced.
Why is a spinoff required? Has it been suggested to Patrick that he form another private or public entitiy for these ventures? Why must the burden be on us already beaten to death shareholders to keep ourselves from being massively diluted. Why can’t management just once do right by the shareholders!!!
Sounds like more self serving self interest by management. So what else is new!
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Just wanted to clarify a point or two from my previous post.
Going Dark for two or three years until dividends could reasonably be expected to flow from AURYN is not a viable option for CDCH for several reasons. As CHG, UsualSuspect and Baldy have already indicated, it is the intention of CDCH to spinout current shareholders into a pure AURYN play, while using new debt funding (in the CDCH vehicle, not the spinout), for any new projects that are located. Thus, going dark for the company would not work for any new projects being considered. Any new project would ideally have a short timeframe for a break even point, much like the La Serena project would have provided. A spinout for current shareholders still costs money, and with liquidity and PPS at current levels would result in substantial dilution to any future dividends in the freely trading spinout. The idea is that the spinout would be in “tightly held” hands awaiting the progress of news from AURYN and eventual dividends.
Regarding the spinout, as was already indicated in previous posts, AURYN has some kind of right of first refusal. The shares held in IRA accounts would be a concern in forming any spinout for all the reasons already discussed within the thread’s posts around the Sept 30 timeframe. It is highly unlikely a spinout into a private company would occur if protecting all shareholders is a priority for distributing any future dividends from AURYN. A spinout into a public company could likely be expedited if there was genuine interest in doing so, but as was done at the SHM last spring, a rights offering of some kind would be announced by the company to facilitate the publicly trading new company, IMO.
Labertew is driving this bus. Why should we have to pay for the spin off? The new directors program should require them to pay for the spinoff. They are getting the shell for nothing. If this spun off to a private company we will all be disadvantaged and Patrick needs to know he is at risk. Everyone should email the company so he knows we are against what they are doing. I do not think he knows how many shareholders are active and understand more about Auryn than he does.
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Nobody mentioning Kevin’s MDMN report? Am I on the right MP page or is there another?
Thnx.
Cerro is currently delinquent in it’s filings. It may be that tax loss selling is the simple explanation for today’s higher trading volume. Alternatively, a case could be made that dilution may be occurring by issuing treasury stock to pay the expense of bringing/keeping minimum required regulatory filings up to date.
In either case, Cerro is going nowhere fast if it remains just a holding company. It is apparent the company is cash poor with it’s only asset an equity interest in AURYN. In order to keep it’s regulatory status intact in future months/years it will need to pay the operational expense of filings. Issuing preferred shares or selling treasury stock is necessary, but dilution will not increase shareholder value for the short term. Once AURYN starts actually producing and showing itself to be cash flow positive market activity may rise substantially. Hopefully, currently held shares are in tightly held hands that will be awaiting the day when AURYN can start issuing dividends, which is likely years away. A spinout into a publicly held company could thus isolate current shareholders (that are financially secure enough to hold for several years). As already suggested, after a spinout is completed, the remaining CDCH shell would be used to fund and carry a separate viable project. Shareholders will have to wait until the issuing of the next regulatory filings to see what the company intends to do, IMO.
You’re in the CDCH thread.
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For those of you who would like to see things with CDCH stay the same, I suggest you write or call the securities attorney that I believe is driving the bus and let him know what you want and that you do not want to be disadvantaged. What is really happening is he his selling CDCH to a group for nothing. No financial gain for CDCH. Usually a group has to pay for a shell like CDC, but he is not asking for anything. He wants us to pay for the spin off. They should pay the monies necessary to spin us off so we can move forward and still be a publically traded company, We are getting screwed and the attorney earns a big chunk of the new deal for putting it together. If we sit by they will spin us off into a private company and we will have not liquidity and many will be forced to sell out of their IRA’s for nothing.
Patrick Day
(801) 363-9065
1234 W South Jordan PKWY Ste B3
South Jordan, UT 84095
info@cerrodorado.com
Michael L. Labertew, Esq.
Labertew & Associates, LLC
1640 Creek Side Lane
Park City, UT 84098
801-424-3555
801-365-7314(f)
www.labertewlaw.com
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Can you share where you are getting this information?
From the last shareholder meeting and from correspondence from Patrick Day and Michael Labertew.
US - I agree with what you posted!
The shareholders need time to see what the value of AURYN becomes a couple of years out. It is evident CDCH is severely cash strapped. If there is another project with backers that would like to use CDCH as a shell after a successful free-trading spinoff (consisting only of current shareholders), then the shell backers need to be the ones to fund a free trading spinoff for the reasons already discussed. There is presently great concern among those shareholders with shares in an IRA. A private company spinoff should not be a consideration at this time as many of these shareholders would completely be left out of any future dividends that may become possible.
It is likely that those directors strictly seeing the CDCH shell as a vehicle for future projects have not properly considered the value of the AURYN equity interest in future years held by all current shareholders. Have they given any thought to the future value of 5% of AURYN at all? Those at the Las Vegas Informational meeting have. Mr. Labertew had reportedly made plans to attend the Las Vegas meeting, but had to cancel at the last minute to attend to other business. He missed a great opportunity to hear about the magnitude of the AURYN project first hand. His focus needs to be on current shareholders and not just future projects.
Thoughtlessly destroying the potential value of those currently invested here should not be left up to those directors whose only interest is strictly putting a new project into a shell. It is imperative that shareholders communicate directly with the two contacts provided by UsualSuspect to let their views be known.
Also, ahead of the upcoming holidays I’d like to sincerely wish everyone a Merry Christmas, Happy Chanukah, Kwanzaa and many blessings in the coming New Year … including health, prosperity, happiness and the time to enjoy it all!
For anyone I left out, have a Happy Festivus!
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Agree 100%
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I know this is old news and I have not been following CDCH too closely but what are people makeing of this announcement?
November 1st, 2016 Montan Mining Signs Binding LOI To Acquire Cerro Dorado And Closes First Tranche Of Non-Brokered Private Placement For $408,500
Never mind wrong Cerro Darado since this one is in Peru.
CDCH is clearly financially strapped. [quote=“easymillion, post:447, topic:928”]
It is likely that those directors strictly seeing the CDCH shell as a vehicle for future projects have not properly considered the value of the AURYN equity interest in future years held by all current shareholders.
[/quote]
“The last I had heard around New Years, CDCH management had not contacted AURYN directly to negotiate a solution to their financial difficulties.” If you are a current shareholder, now would be an opportune time to use the contacts provided to voice your opinions if you have not already done so. Do it today!
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I sent a lengthy email to Patrick on 12/14 addressing these exact concerns and asking him to publicly inform us as to his plans and have received no response. As far as I can tell he is MIA!!!
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How can i PM you on this? I recieved a response from Michael Labertew today aftem my email to him yesterday. He claims CDCH is talking with Auryn about a financing arrangement similar to that concluded with Mdmn. Other details about plans too.
I’d like your opinion on the value of posting his reply since i’m not at all sure if it’s all old info or new…would it be of interest??
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Well, that’s something at least. I have tried to e-mail and call American Registrar and the two listed Security Counsels listed on their OTC page with zero responses, phones answered, or calls returned. Maybe they’ve decided to end the silence strike.
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Interesting … I received no response from my email a few days ago.
Check you email folder found under your moniker icon in the upper right hand corner.The folder is opened by clicking on the envelope (middle icon). Explore other features under the preferences icon (looks like a “gear”) on the far right.