X[quote=“gunney, post:6, topic:2602, full:true”]
Has the conversion rate of mdmn to aumc been decided or are we still guessing?
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Does it matter? The question I’d be asking is why would anyone want AUMC restricted shares unrestricted with the current prices so far depressed? At this time, wouldn’t it totally bankrupt the company (a total loss to shareholders), or lead to another cycle of uncontrolled dilution? Strategically it makes no sense whatsoever without some very good news first. My opinion only, but what would be the consequences of unrestricting 95% ownership of AUMC shares with the current share structure?
In the latest Q3 there are virtually no freely trading AUMC shares; only 5M in the float (actually only 2.5M in the “public float”). AUMC has 100M shares authorized. Are the unassigned 30M “reserve shares” there to fund future operations once there is significant value proven, even if on a speculative basis? There has already been a 100:1 RS and name change. What are those 30M “treasury shares” going to be worth when bargaining for funds, or to back a private placement of some kind? There is nothing but very risky speculative value to the mountain at this time. There is the Hochschild option agreement. Is the LDM worth $7M for 51% in 5 years or is it $30 M for 60% of the LDM?
What value would you put on the remaining ADL? If we go with AUMC Q3 the entire properties are presently valued at $46M. Will there be additional JV partners for the porphyry targets? There are many other mining properties with proven resources valued for less. There are far too many mining (and other stocks) making good profits in this market. Most shareholders that were able to take a tax loss have wisely already done so.
If all shares are unrestricted without news, does anyone think AUMC will remain at current prices? Medinah shareholders hold 16,274,200 shares of restricted AUMC shares. There are approximately 2.8B shares of MDMN out there and tradable. The 0.58 conversion estimate for each MDMN share to AUMC does appear valid (23% of AU). Is anyone buying these shares willing to wait years for a conversion to take place? Maybe to replace shares where a tax loss was previously taken makes sense. It may be a very long hold.
Putting an additional minimum of 16.3M added to the current 2.5M freely trading AUMC shares will have an effect on price. Where will the share price go? Will AUMC’s 30M shares of “treasury stock” be worth $7M based on AUMC’s current market price of 0.236, or more like $10,440 of MDMN’s current trading price after conversion ($0.0006 x 0.58 x 30,000,000 = $10,440) if added to the float? Unrestrictricting shares without valuations and progress on the Caren Veins (Larissa adit), the Fortuna, or the Pegaso Nero through further drilling or JVs is strategically senseless for the survival of the company. Would it not be better first to have some substantial news to bolster share price, even if shareholders end up waiting years for progress to move forward? There are very limited funds apparently available for progress moving forward. That’s why I hope my MDMN shares do not become unrestricted prematurely. This is not a trading stock and should be put in a sock drawer by many current shareholders.
D**n, now I’ve got to find a pair of goggles and find out where DOC hid the tank! 