Using the info from CDCH Report (June) -
“As of June 30, 2017, the 5% interest is reported at a value of $270,960.”
$270,960 * 20 = $5,419,200 (value of AURYN)
$5,419,200 / 296,333,350sh = $0.0183 per sh
$270,960, lol that’s peanuts, wait until the property is officially declared , world class gold cooper deposit.
Rod. Your math is off. If the 5% interest in Auryn were valued at $270k this would equate to .0009 a share.
A $5M value for Auryn is a bit ridiculous and the market is clearly discounting the same.
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How is his math off, looks correct to me.
$270,000/296,333,350
value divided by outstanding shares…Auryns total value is not part of the calculation
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Yes, we’ve been through this exercise a few times. AURYN has 100M shares of which Cerro has 5%, or 5,000,000 of the shares that formed the company (5% to Cerro and 25% to MDMN). 100M shares of AURYN is not necessarily the number of shares that AURYN issues to go public if/when the F-1 is approved and AURYN does go public. The implied value, correctly or incorrectly, at the time AURYN was formed was roughly equivalent to the $100M option originally offered for the ALTO, before all sh*t hit the fan. Using that valuation of $100M for AURYN (granted - it may take 2-3 years for AURYN to have that valuation - it could be more, it could be less), CDCH is roughly valued at $5M / (300M shares) = $0.0167 per share. No one knows if/when AURYN will reach that $100M valuation, but they are certainly making an effort to get there, and beyond. See my previous post on how the F-1 might be structured to take advantage of the 2-3 year time frame):
Continuing the discussion from Medinah Minerals (MDMN) - 2017 Q3 General Discussion:
You’re right John, I shouldn’t have used AURYN’s total value. It should have been $270,960 (5% of AURYN) / 296,333,350 sh = $.00091 (worth per CDCH share)
Sorry about that !
If that is true, and CDCH historically trades at about 2X of MDMN, then shouldn’t MDMN be trading at $0.00045? Someone’s trying to fit a round peg in a square hole! Determining value is not solved by simple math as has been pointed out for years.
As Baldy already stated: “A $5M value for Auryn is a bit ridiculous and the market is clearly discounting the same.” I think $270,960 for Cerro shares is equally erroneous as a basis for value, which the market is also discounting. Where does the time value part of the equation fit in? All value is directly tied to the current assumed value of AURYN, which is largely unknown. There is no “simple math” to determine current worth of a CDCH share. It will only start to be revealed once AURYN becomes publicly traded.
Q3 Report: https://www.otcmarkets.com/financialReportViewer?symbol=CDCH&id=182767
Closing with Auryn and change of control is complete asof Nov 10
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Cerro’s Financial Statements are missing. In the quartely it states:
Item 5. Financial Statements The Company’s financials for the period ending September30, 2017are incorporated by reference and havebeen posted on OTCIQ.com
But OTCIQ.com is for companys. Has anyone been able to find the financial statements ?
Rod
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Thanks Wiz … it’s been a long time coming!
Hoping for some progress reports from the new management team.
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No posts here at all? Really??? Guess I’ll check the MDMN forum…
Billion…7 Billlion…WTF
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AURYN Sells Mining Claims to Cerro Dorado, Inc.
AURYN Mining Chile SpA (AURYN) is a private company that owns and controls over 10,500 hectares of mining claims in the Altos de Lipangue mining district. Two of our shareholders are public companies.
Medinah Minerals, Inc. (OTCMKTS: MDMN) (Medinah) owns 23.559% of AURYN.
Cerro Dorado, Inc. (OTCMKTS: CDCH) (Cerro) owns 5% of AURYN.
To provide liquidity to these companies and give their shareholders direct ownership in the underlying asset, AURYN has sold its mining claims to Cerro for 6,650,000,000 common shares of Cerro and cancellation of Cerro’s AURYN shares. The remaining AURYN shareholders now own 95% of the issued and outstanding shares of Cerro. These shares have a one-year restriction on them. AURYN will work with its shareholders to convert their AURYN stock to CDCH stock.
As the majority owner of Cerro, we look forward to working with current Cerro management. This includes the following:
Creating a management team and Board of Directors suitable for an exploration company intent on becoming a junior and major mining company.
Launching a massive exploration program on the Altos de Lipangue mining district including entering JV agreements with companies that have the specific expertise necessary for exploring and mining the variety of targets we believe we have in the district.
Focusing our resources on becoming an active gold producer by reopening the Fortuna gold mine and actively exploring and mining the gold veins found in the Larissa tunnel.
Subject to regulatory approval, consolidating the capital structure, changing the name of the company, and moving to a higher exchange or tier on the OTC.
Along with the Medinah shareholders, AURYN was also impacted by Price’s misrepresentations. AURYN, could have abandoned the Medinah and Cerro shareholders, but chose to treat everyone fairly, the same way we hope to be treated. With the best efforts and support of Gary Goodin, Italo Volante, Raul del Solar, Kevin Tupper, and friends of the companies, we now finally turn the page on the old and look forward to a very bright future for those who have invested in the Altos de Lipangue mining district.
Merry Christmas and Happy New Year.
Maurizio Cordova
Executive Chairman
AURYN Mining Chile SpA
http://aurynmining.com/auryn-sells-mining-claims-cerro-dorado-inc/
Note: None of this is reflected on the OTC website!
Cerro had 300M owning 5% of Auryn / ADL
Now there is approx. 7B shares owning 100% of the ADL
They explicitly mention “consolidation of the capital structure”, that is, there will be a reduction in the number of outstanding shares once all the dust clears
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Once we get converted to CDCH, will our stock be restriced?
The restriction can’t disappear just because Auryn hands shares to someone else. It wouldn’t be shocking though, imo, if they wait till the restriction is gone (i.e. 1 year) until they do the distribution. If so, in the meantime, MDMN will keep trading on the basis of its CDCH ownership.
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Should firm up the price of CDCH. I am not good with math, does this mean the current shareholders of CDCH got a premium for their current holdings or they still at par with everyone?
Everyone was treated exactly the same.
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