“It seems that Kevin knew of the cash call?”
Now what was I saying? The news comes out after my post, coincidence?
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The news release tonight is a bit confusing to me. It first states that on 2/22/2017 a private party offered to finance our capital call. At first, I thought maybe it was Chapin who was the private party. Then it says Auryn Holding Corporation will cover our capital call at very favorable terms. I wonder if something changed from 2/22/2017 to 3/10/2017…or if it was Auryn Holdings all the while. Just makes me wonder a bit.
Medinah Signs Contract with Auryn Holdings Corporation
March 10, 2017
Medinah Minerals, Inc. (Medinah) (OTCMarkets: MDMN) owns 27.5% of the outstanding shares of Auryn Mining Chile SpA. (Auryn). Auryn is a privately held company based in Santiago, Chile.
On February 15, 2017, Medinah’s President & CEO, Kevin Tupper, attended an Auryn Mining Chile SpA shareholder meeting in Santiago, Chile. At the meeting Auryn informed its shareholders of Auryn’s plan to capitalize its debt by issuing a capital call to its shareholders. Any shareholders unable to meet the capital call will retain their current shares but be diluted in their overall position.
To maintain its 27.5% equity position, Medinah signed a Letter of Intent on February 22, 2017, with a private party to finance Medinah’s participation.
Medinah is pleased to report that on March 10, 2017, it signed an agreement with Auryn Holdings Corporation to finance Medinah’s portion of the raised capital. The basic terms of the agreement are as follows.
Auryn Holding Corporation will cover the payment of approximately $2,000,000 that Medinah Minerals, Inc. owes to Auryn Mining Chile SpA.
Medinah Minerals, Inc. will pledge its newly issued shares in Auryn Mining Chile SpA as collateral against the loan.
The loan will be a 0% interest loan payable in full on December 31, 2021.
The loan payment date can be extended upon the agreement of both parties.
Should the shares held as collateral become publicly traded, the loan will convert to an interest only balloon note with a four-year term and a simple interest rate of 4% annually.
Until the loan is paid off in full, the shares remain as collateral securing the debt.
If Auryn Mining Chile SpA sells or transfers its rights to any other party and Medinah receives shares in another entity because of the sale or transference, the new shares that Medinah receives will serve as the collateral for the term of the loan, effectively replacing the shares in Auryn Mining Chile SpA.
A Medinah representative will attend the upcoming Auryn shareholder meeting on March 15, 2017. We will meet the cash call and retain our current interest in Auryn.
Submitted on behalf of the Board of Directors
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Is my reading of this correct? We own 27.5% of Auryn minus the $2mil we owe them??
Then if we play the math out, if Auryn has a value of $100mil MDMN share of it is $27.5mil minus $2mil for a final share of $25.5mil. Am I correct?
Looks like that is the scenario that is playing out
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Should I drink some shots now?
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It seems that Medinah had found a private party to cover the cash call but then Auryn probably didn’t want a third party to join the party so they offered their terms.
What abut CDCH
Interesting! Obviously a provision for a possible complete buyout from a Major!
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Not unusual. 
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LOL. Nobody is used to dealing with reputable ethical people. This shareholder base will never trust anyone again.
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Yes, good question indeed , what about CDCH ?
Well now…at least we can all stop with all the unpleasant speculation and the stone throwing at Auryn. A bunch of thanks are in order to Kevin once again. Clearly he has a very good working relationship with Auryn which allows Medinah to cut sensible deals despite the Company’s current weakness that don’t mortgage the Company’s future. (I also think that Auryn remains confident in a very significant near term cash flow so perhaps they can afford to be generous.) I assume we will found out later next week what the $7+ million dollars are going to be spent on this year. One possibility would be to obtain a ore processing plant of some sort to increase the grade of the ore before sending it to Enami. It probably would pay for itself very quickly and it would make sense for them to obtain it now before they start mining a lot of ore.
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Congratulations to Kevin Tupper and Auryn & their associates for reaching a deal that supports everyone’s best interests, is equitable to all and provides Medinah with the ability to meet it’s responsibilities. Auryn and Auryn Holdings have just shown significant and well appreciated support of Medinah and it’s share holders while putting fire to the feet of those that have done Medinah harm. I hope all shareholders appreciate the significance of this agreement and the show of confidence in a continuing relationship that will be profitable to all that should prosper from the Alto’s value. Thank you Kevin Tupper, Auryn and Auryn Holdings for the demonstration of support, transparency and ethics that so benefits Medinah and its shareholders. Well Done!.
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Mike, can you explain to non-geo’s what this is and its ramifications? Are we talking about taking 3 grams per ton and turning it into 10 grams per ton? How does this work?
Bubba,
It is all a little fuzzy to me. This isn’t my area of expertise other than watching the show Gold Rush and how they process gold. Unfortunately, they are going after placer style deposits while Auryn is going after hard rock stuff.
They probably have a combination of free milling gold and gold chemically bound in sulfur. The free milling gold(generally the stuff in the quartz) could be crushed up and then sorted by gravity separation generally using water. (They probably could put in something over near the Fortuna where there is a source of water from the old mine.)
The sulfur bound gold could best be extracted via a relatively small acid leach pad. This method would take awhile to put together and to get environmental permits so seems less likely in the short term.
For sure they do have lots of low grade gold in additional to the high grade stuff they are mining. The low grade stuff is not economical to ship so they would have to enhance the grade by some method first.
I got to think the really high grade stuff will be found in the quartz so perhaps they can process that to the point that it can simply go right to a smelter and saving a lot of money in the process.
Somewhere in these reports, Pimenton Technical Reports | Cerro Grande Mining Corporation
You can read about the processing plant these guys set up in Chile for a small high grade mine like Auryn’s which might be applicable.
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If I had 7 million dollars to spend up on the mountain this year…what would I do with it?
- IPO related costs.
- Drill a few well placed holes at the porphyry target to garner better JV terms with a Major.
- Get the Fortuna and/or LDM mines going.
- Build more crew quarters for miners that will be working on multiple levels in the Caren mine.
- Dollars for a more aggressive exploration program on the Alto.
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Once again ,Auryn is being more than reasonable with its’ contractural obligations with Medinah. Yesterday’s press release was totally reassuring that Auryn wants a symbiotic relationship with Medinah and its’ shareholders. I can’t stress enough that Kevin at the helm with his working relationship with Auryn and their kindness to us will allow us to eventually prosper in this investment .Thank you Kevin. Thank You Auryn.
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Yep,thanks Kevin for your great work,where were you all these years 
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Very well said jds!
If anyone can’t see Auryn’s, Maurizio and Kevin’s ethics and goodwill by now, then they never will. As I’ve been maintaining all along, this is not the same Medinah.
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