Made a slight adjustment. 
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Madmen
Thanks for sharing your friend Frank with us. It sound like he was a friend that might be gone, but wonât be forgotten.
Heâll be back. âŚ
Great posts everybody. For me, the elephant in the room is the âdisconnectâ between the share price performance, even allowing for Lesâs activities, and the value of the assets. If you picture a split screen TV set, on the left-hand side is the share price performance since the highs at 18-cents. The share price is down 99.7% since then.
On the right-hand side of the TV screen is the value of the ADL Mining District over this same timeframe. The key is that the ADL features very high-grade, relatively near surface, near term gold production opportunities. âNear termâ is important for three reasons. The first is that the price of gold is up almost $500 over the last few years. The second is that the Caren Mine was deemed âeconomicâ back when the POG was much, much cheaper. The implication would be that the economics today would be rather robust. The third thing is that weâre invested in an industry in which increases in the POG tend to drop straight to the bottom line for gold producers since the costs to mine an ounce of gold remains relatively fixed on a per ounce basis. The LEVERAGE is enormous if, if, if a junior can go into production at a time like this.
As far as timing, Medinah/AUMC is actually about 3 years overdue for going into production. Management thought they were about to commence production until the authorities made them fabricate 3 new ventilation/safety manway vertical raises to surface. This delay might accidentally turn into a blessing in disguise because of what the POG has been doing and is projected to do due to the Covid-19 virus and how the Central Banks have been forced to deal with it and its economic ramifications.
Rick Rule did a Kitco interview two days ago and made this statement:
âAs the sector itself performs, and the cost of capital that the sector enjoys declines, then you will see the exploration sector pick up. The caveat to that is that the industry has underinvested in exploration for many, many years and the exploration and development pipeline is very constrained, so companies that enjoy SUCCESSFUL EXPLORATION EFFORTS (emphasis added) will see themselves rewarded extravagantly in the marketâ.
What is the ultimate way to irrefutably confirm âSUCCESSFUL EXPLORATION EFFORTSâ? You do whatever is necessary to put it into production. If SERNAGEOMIN says to fabricate 3 vertical raises then you do it. That LEVERAGE only belongs to the producers of gold, not the explorers for gold.
Now go back to that split-screen television set. From a statistical probability point of view, what are the chances that a junior explorer with Medinahâs past corporate governance issues, that has lost 99.7% of its share price and is trading in the âtriple 0âsâ would ever be in a position to go into gold production and access that LEVERAGE at a time in which the POG has recently moved up about $500 and the prognosis for further gains is very realistic? Statistically the chances would be about ZERO.
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Doc do we know for sure thatâs they are still building the ventilation system? We havenât heard anything from these guys as to where we are today and if anything is happening on the property. The good news is the property keeps going up in value with where the POG is today and it looks like it will go higher. I and many other shareholders would like for all this to happen before we move on to our next lifetime. We continue to waitâŚ
If we use the split screen analogy: while the price of gold has rallied $500oz over the past several years. Or the equivalent of ~40%. The share prices (the other screen) of both MDMN and AUMC have dropped over 75%.
Iâm not sure how anyone of sane mind could look to the major delays as a blessing as the ratio (gold going up less than the share price has done down) leads to a major disadvantage to stakeholders actual investment. In other words, the only way a project like this, with no defined resource, getâs into production is by using itâs currency (read: share price) to fund the transition into production. With the âcurrencyâ currently trading at a considerably smaller value vs. what it would cost to bring the project into production, there is a major problem.
There has been a decade long conversation on this board of the importance of separating âthe mountain vs. the investment.â Clearly a hard (and very expensive) concept for many to grasp.
Many smart people that go into a business, look at all the angles that have a effect
on the services or product outcome they desire .
Our new owners seem to have these type of traits.
They own a mountain of minerals in Chile, they know a lot of positives about that mountain. Most are the same issues that Beeiaboy points out.
Most of the items are technical issues that can be overcome with $$ thrown at them.
The one issue that is always a bug in any well laid business plan is ⌠people.
You need then to accomplish the plan. But more importantly you need the
people around your business plan to like it.
Some times they, donât.
That can cause problems, delays, and sometimes failures.
Weâve seen it happen in the mining industry plenty of times.
I hope this is not our delay of action. I donât know South America like our new owners do. Maybe they see and think beyond the box we think in.
âŚAll Stay Well⌠And Be KindâŚC.s.
Yeah I totally agree with you. All the pieces of shit from investorshub and the crooked ass Jerry Williams aka Monk clown. The money I pissed away tied up in this turd with 1.4 million shares or the beating I took in CDIV I could go on and on. If I had just dumped it in Amazon instead of this crap I wouldnât be a bitter jackass.
Alas I hope some day I can erase the red from my portfolio and stop seeing MDMN -97% everytime I log inâŚsigh
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AUMC Attorney Letter with Respect to Current Information - Apr 27
https://backend.otcmarkets.com/otcapi/company/financial-report/244623/content
Looks like MDMN didnât even bother to file a 2019 annual report. Canada allowed a delay of reporting but I am not aware American companies have been given this grace period.
So what happens if mdmn stays delinquent on reporting and goes away prior to shareholders getting AUMC shares?
Can that even happen?
Hi CHG,
I was hoping youâd reappear. It appears that Medinah management hasnât filed their quarterly 15c2-11 informational disclosure statements since year end 2018. Apparently, the plan was to âgo darkâ with both the OTCMarketPlace as well as into default with the Secretary of State of Nevada. Both of these moves are, however, easily reversible but probably not necessary with any upcoming AUMC share distribution.
It appears that Medinah has been placed into a protective cocoon in order to save the cost of making these filings and paying fees to the SOS of Nevada. To me, this makes sense when your shares are trading in the âtriple-0âsâ and youâre bumping your head against the authorized share ceiling. Being a mere âholding companyâ that holds shares of AUMC, I would think that management figures that most (but not all) of the salient information that shareholders would seek is contained in the AUMC filings. If the unrestricting, allocation and distribution of the AUMC shares is the plan then this makes sense in order to prevent any further dilution to Medinah shareholders.
The downside to this, IMO, correct strategy is that Medinah appears, to anybody unaware of the value of a 24% stake in the ADL Mining District, that it might be on its corporate deathbed. Correct strategies implemented while cleaning up somebody elseâs mess sometimes have untoward consequences. For me, the important disclosure made on the most recent AUMC filings is that AUMC is all paid up on its taxes for the various pedimentos, manifestacions and mensuras it has in that 10,500-hectare block.
AUMCâs most recent filing contained this:
âNOTE 5 - RELATED PARTY TRANSACTIONS
Certain stockholders have paid expenses on behalf of the Company which are to be repaid by the company. These payables are considered due on demand and are noninterest bearing. The total amount due as of December 31, 2019 and 2018 was $40,870 and $22,960, respectively. [NOTE: Once again, it appears that Auryn Holdings Corp. has come to the rescue with yet another noninterest-bearing loan so that AUMC (in this case) need not sell shares at current levels in order to fund operations.]
The Company holds a mining option contract with a related party. [NOTE: Iâm assuming this is either Masglas or AHC once again.] During the year ended December 31, 2019, 10,568,309 Chilean Pesos or approximately $13,610 USD was paid by that related party to the Chilean government to maintain the mining concessions mentioned in Note 4. These funds will not be refunded by the Company and are no longer payables of the Company [NOTE: I assume that this means that this was a freebie to Auryn (and therefore indirectly to Medinah, from AHC or Masglas but since Maurizio and his wife own about 73% of the AUMC shares then this is partially a âto me from meâ type of gift to an extent. Once again, Medinah appears to have dodged yet another dilutional bullet. Once again, Maurizio had the opportunity to put the screws to the Medinah shareholders but once again he didnât take it.] and have therefore been excluded from the income statement for the year ended December 31, 2019.â
In times past, Medinah always had a big brother figure in the background that forwarded cash to Medinah in an interest free fashion so that Medinah could maintain its interest in the properties. This party was referred to as âAHCâ or âAuryn Holding Corp.â.
When the Cerro transaction occurred, of course the books had to be squared up and Medinah paid its pro-rata share of expenses via percentage points of the action i.e. our percentage went from about 26% to about 24%. The other option was to sell shares probably at a deep discount to market prices due to the implied risk. This âsquaring upâ of the books was 100% necessary. You obviously canât distribute that debt to individual Medinah shareholders in the transition to Medinah becoming a somewhat robotic âholding companyâ. The naysayers will say that AUMC management is bad, bad, bad. On the contrary, they have all but bent over backwards on behalf of the Medinah shareholders of which they are the largest shareholder.
The naysayers will say that Auryn got too good of a deal. That statement is impossible to make at this point in time. Why? Because they donated their Caren mine into the pot. Itâs the near-term gold production opportunities from the Caren Mine that represent Medinahâs pathway to reversing earlier damage and retracing the share price plunge.
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What a SHIT SHOW this is, although I have already realized this is a lost case. And whatever I get out of it is some extra gravy for my Poutine âŚ
TK
If I would have bought Amazon at $250, I would have $250k. What a dumb ass I am.
TDK.
Safe to assume that Maurizio will also absorb the $10mm+ it would take this bring this project into minimal production on a non-dilutional basis to MDMN shareholders. Yup, thatâs a sound assumption. Time to buy more shares.
If you really squint your eyes and hold your breath some of what BB is saying almost sounds reasonable: why spend any money to keep MDMN current if the shares are simply going to convert to shares of AUMC. But how does one explain why AUMC, which is current with itâs filings, is also down 95% since new ownership took control? Is this another âinexplicable strategyâ being pursued? How is AUMC going to move the projects towards production with a currency/market cap of $14mm?
Guess we wait for the share distribution of one piece of worthless paper for another. Meanwhile, precious metals stocks are on an absolute tear while this investment collects dust.
Hi Dentman,
In regards to your question: âSo what happens if mdmn stays delinquent on reporting and goes away prior to shareholders getting AUMC shares?
Can that even happen?â
By âgoes awayâ I assume you mean undergoes a corporate dissolution procedure pursuant to the Nevada Revised Statues. This involves passing a BOD resolution to dissolve the company. Then the recommendation is made to shareholders who are entitled to vote on the matter. Notice has to be given to the shareholders prior to any vote. Maurizio bought an awful lot of Medinah shares back between 5- and 10-cents as well as 220 million from Quijano at, I believe, 1.5-cents but I donât think heâs anywhere near a 51% owner.
As I understand it, before any dissolution or in conjunction with the dissolution any creditors need to be dealt with and the assets (mainly AUMC shares) need to be distributed. Because of the length of time that the distribution of the AUMC shares has been taking, Iâm going to assume that the distribution of these shares is part of a corporate dissolution which is in process. This is only a guess but it doesnât take this long to unrestrict, allocate and distribute AUMC shares in the absence of a dissolution process. But since these shares represent the bulk of the assets of Medinah, I would assume that the dissolution is a go and the corporate vehicle will be âdeep sixedâ. I recall one of the forum participants getting an E-mail from management stating that âmanagement is waiting on a full legal opinionâ which is the basis of the delays.
What Iâm not too sure of is the fate of the huge tax loss carry forward. One of Medinahâs accounting firms had this pegged at $51 million several quarters ago. Junior explorers do nothing but spend money and Medinah was good at raising money and spending it. Hopefully, a good chunk of the money Les raised from the behind the scenes sale of shares went into the ground or to pay expenses. Kevin would know more about the dirty details. No tax authority could deny that Medinah raised and spent a lot of money over the last 21 years. Iâm not sure if there is some legal mechanism available to sell or transfer that tax loss to another party like AUMC prior to any corporate dissolution.
If youâre a believer in the merits of the ADL Mining District, then that 24% stake held by Medinah might be attractive to some large party interested in the ADL as well as the accumulated tax loss. I think that Maurizio would love to swap all of us shareholders for a major miner as being a shareholder in AUMC. This could set up AUMC as a target for the major holding that 24% stake. But something tells me that Maurizio wants to build something of significance the old-fashioned way.
The statistical probability of this going on is no doubt super low but something has to explain the inordinate amount of time involved in us receiving our AUMC shares. If a simple corporate dissolution was going on, I would have thought that weâd have received our mandated notice by now.
Hereâs a link to the Nevada Revised Statutes Chapter 78 section 580:
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With permission to pass along from Mr. Raul Del Solar:
RAUL DEL SOLAR rsolar@onefao.com
To:
Fri, May 15 at 4:56 PM
Dear Mr. , I am looking forward to update all shareholders as soon as it is possible. Medinah Minerals received
Auryn Mining Corporation (AUMC) shares on December 15, 2017. AUMC had a holding period of one year before
it could transfer shares to Medinah. As you know Medinah received those shares about a year ago, and only since
December 15, 2019 (a few months ago) we are eligible to allocate those shares to the company shareholders. The reason
for the additional one year holding period after Medinah received shares from AUMC is that given the amount of shares
the company owns in AUMC it is consider and affiliated entity, reason for an additional one year holding period.
We have speak to legal counsel and we can proceed with allocation of AUMC shares to all shareholders,
however, we have not done so given we are waiting for the appropriate time. As soon as it is appropriate
I will be updating everybody through our website, please check the news update section. At this point I cannot
provide any further information, just be patient, thank you.
Raul del Solar Berckemeyer
One Family Office
President
Lima Tel. (51) 9.9560.5755
E-mail: rsolar@onefao.com
Skype: raul.solar
The information set forth herein was obtained from sources which we believe reliable, but we do not guarantee its accuracy or completeness. The information is for discussion purposes, and neither the information, nor any opinion expressed, constitutes a solicitation by us of the purchase or sale of any securities, commodities, or other financial instruments. Family Office services offered through One Family Office, a Republic of Panama Corporation.
The information contained in this transmission may be privileged and confidential, and is intended only for the use of the individual or entity named above. If you have received this transmission in error, please immediately reply to the sender that you have received this communication in error and then delete it. Thank you.
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MANY thanks Zotron!!!
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âWe are waiting for the appropriate timeâ. What the hell does that mean? What an insulting joke.
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Thank you zotron! So it sounds les has turned over all his shares or else the allocation wouldnât of been given the green light from the attorney. So what could the appropriate time? Big news to promote? Gold moved up Friday and looks to be moving to 1800 here soon possibly take out all time high like TR stated.
âBe patientâ Aard
You mean be patient like the last 5,10,15 years for some here? That release is no different than all of the BS that was spewed from Lesâs mouth. Just keep putting out the occasional carrot and pushing it back and pushing it back. AgainâŚsaying to longtime shareholders âWeâll fill you in on our little secret at the appropriate timeâ is so disingenuous and insulting. They look at us as if we are stupid little children. Iâm all in here. Iâm not going anywhere, but I refuse to be a cheerleader for these clowns.
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