1 Like
After reviewing Auryns Twitter pictures of the site visit by the Chilean students and their professors, I’m getting to like the country of Chile more and more.
I might have to make the move there some day soon.
What helps is the picture of the mining students inside AURYNS working mine shaft. I like their thought on this adventure.
Probably wouldn’t happen in the USA. without a year of paperwork by the miner and other fingers in the pie. By the time one would review and pass the Code of Federal Regulations CFR, watch all the mandatory M.S.H.A safety videos, pass a OSHA safety check, and sign off on insurance liability check list, these students would have gray hair and be using a walker.
If you’ve never been on site of a above ground “or” below ground mining operation in the USA, you cannot grasp the scope of how much is said in these pictures to someone who has.
Keep up this great work Auryns. I might be down soon to see your/our site soon. C.s.
4 Likes
CS, If you “make the move”, I hope you’ll have a guest room or 2 as !00 of your closest friends may want to come visit!
1 Like
Aumc Financials are out
1 Like
Regarding current liabilities and who has paid and is paying mining equipment and employees to date:
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 non- interest bearing. The total amount due as of June 30, 2021 and 2020 was $62,947 and $47,863, respectively.
The Company holds a mining option contract with a related party. Pursuant to the agreement with that related party they would incur all expenses related to the exploration and exploitation of minerals. There will be no repayment of those expenses from Auryn Mining. When minerals are found and sold the profits will reimburse the related party for all expenses incurred before profits are shared with Auryn Mining. As of June 30, 2021, the related party has incurred approximately $1,900,000 of expenses. These funds will not be refunded or repaid by the Company and are not payables of the Company and have therefore been excluded from the income statement for the six months ended June 30, 2021. [1]
- Financial Statements - Note 5
4 Likes
The Company holds a mining option contract with a related party. Pursuant to the agreement with that related party they would incur all expenses related to the exploration and exploitation of minerals. There will be no repayment of those expenses from Auryn Mining. When minerals are found and sold the profits will reimburse the related party for all expenses incurred before profits are shared with Auryn Mining
Ok. This related party has an option to do something.
So what is it?. Auryn obviously is not going to let us know at this time.
Its not like the Hochschild contract where they need to spend money at their expense to earn a 51% interest.
This contract requires them to spend their money but they will get it back from profits from production. So in my opinion there is substantially less risk for them because they know there will be enough production to get there money back. By doing the contract this way, they will be able to determine the significance of the discovery and can then decide to exercise the option or not.
Assuming they exercise the option, what are the terms? Class, anyone?
They will be able to see the belly of the beast with very little risk.
2 Likes
Can anyone help clarify this ? I hope that this is not Juan’s son (or relation), owning 23 % of AURYN !
From current Financials :
“Amparo Quijano Claro Owner of more than 5% Lima, Peru 6,027,270 common 23%”
[ apparently Amparo means ‘protection’ ]
From February 24, 2008 shareholders meeting :
“Juan José Quijano Fernández (Company President/Director), his son Juan José Quijano Claro”
So far, the first 1,000+ ounces are not ours.
This is Maurizio’s interest free loan to cover the costs before we turn profitable, which is imminent. Then he will be reimbursed from the initial profits until he is made whole.
I don’t think there is anything more to it than that given we have been told a benevolent 3rd party is doing this for no interest or net gain. He is clearly doing it to Kickstart the production and get the train moving, but he is not diluting us further or charging interest. Yes MC gains by funding his own investment but he could have charged us or diluted us and he chose not to. That is a really stand up move 
.
6 Likes
I agree. The beauty of the arrangement is we are letting a deep pocket related financier do the heavy spending to discover exactly what we have without the massive dilution. Now, once the spending is complete ( and they have been paid back ) and we know what we have this same related financier has an option to get involved in a more permanent way. A great deal of the risk will be mitigated so there further involvement financially should be substantially less dilutive than would be other wise.
This unique arrangement was only possible because everyone knows that the project is viable ( they will get paid back ) and we have related parties with the deep pockets necessary to do serious mining and these same related parties are significant shareholders like us who don’t want to be diluted into oblivion.
So does anyone want to take a stab at what percentage we will have to give up if our financier decides to go all in?
2 Likes
That’s the big question Z! I’ve known that nobody does anything for free there is always a price.
In reply to : This unique arrangement was only possible because everyone knows that the project is viable ( they will get paid back ) and we have related parties with the deep pockets necessary to do serious mining and these same related parties are significant shareholders like us who don’t want to be diluted into oblivion. “BINGO”
So does anyone want to take a stab at what percentage we will have to give up if our financier decides to go all in?
*** A LARGE percentage of mining operations (I HAVE KNOWN) have had a financial investor" backer of some type. Some don’t want to be in it for the long haul, just want to make some money on their money.
Sometimes this are people who buy exotic cars, watches, horses, wine etc.
Who wouldn’t like to say they are backing -banking a gold mine.
Others like to make money on start up businesses of any sort.
Some have money they like to roll around with no __ , __, __ strings attached. ? You fill in the blanks.
Some deals have contracts (legal) some are hand shakes like in old times.
Ours ? Don’t Know enough … yet.
I just know, it’s getting something done. Thumbs Up on that.
2 Likes
There shouldn’t have been a dilutive option piece to this contract or it should have been disclosed.
Also consider this:
First, why would we need more financing if the company is in position to make $10M -$20M in profit annually with arrangement that is currently in place? If we are talking about funding drilling of the porphyries then that’s a different story and should not dilute the nearterm gold profits.
Secondly, any deal with an insider must be made at arms length. Besides, diluting the AUMC shareholder would be diluting himself. He would only be benefitting off diluting the 30% or so he doesn’t own.
Third, from what we’ve seen so far from MC, do you really think he would do an insider deal to shift more equity to himself personally? That is extremely risky from a legal standpoint.
Rod, where have you been?
Amparo is Marizio’s wife AND Juan’s daughter. You can even get a diagram of this now via the wonders of the all knowing internet:
1 Like
All good questions Jimmyp. Lots of unknowns about this contract.
But, it is an option contract, so our financier will be making a decision to exercise it or not at some point, whatever it is.
1 Like
If I understood Spanish, I might say I wouldn’t mind being a fly on the wall at their holiday gatherings.
1 Like
So what is the connection to her receiving 23% of AURYN ?
Was this from JJ’s original position in Medinah or JJ’s mining claims folded into Cerro/AURYN ?
Is JJ’s son totally out of the (ownership) picture now ?
Thanks for the info and any future clarity.
Rod
I will. 0%. No dilution assuming we get cash flow positive in the next couple of quarters.
I’m only talking about La Fortuna and the gold mining. If we do a deal with someone to explore (and maybe one day mine) copper on the LDM, Lipangue Breccia, or Pegaso, that’s different.
7 Likes
Thanks Wizard. So if you know, what does the “mining option” imply?
The Company holds a mining option contract with a related party. Pursuant to the agreement with that related party they would incur all expenses related to the exploration and exploitation of minerals. There will be no repayment of those expenses from Auryn Mining. When minerals are found and sold the profits will reimburse the related party for all expenses incurred before profits are SHARED with Auryn Mining
I think this contract indicates that our related party is acting as an operator rather than a financier/partner. JMO. Still unclear what the “mining option” implies.
1 Like