Let’s get this SP moving north!
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Perfect timing for the wheel loader:
Gold prices are holding at session highs as the inflation threat in the U.S. continues to growth with producers feeling the heat.
Wednesday, the U.S. Labor Department said its Producer Price Index (PPI) rose 1% in June following May’s 0.8%; the data was stronger than expected with economists’ forecasting an increase of 0.6%.
For the year, producer prices rose 7.3% the largest advance since 12-month data were first calculated in November 2010.
The report said that core producer prices rose also rose 1% last month, up from May’s increase of 0.7%. Economists were expecting to see a 0.5% rise in wholesale inflation.
Gold prices were holding strong gains ahead of the latest inflation report and have added to those gains in initial reaction. August gold futures last traded at $1,829.20 an ounce, up 1% on the day.
Anyone here receive this type of message from their broker:
On September 28, 2021 , new amendments adopted by the U.S. Securities Exchange Commission (SEC) go into effect to enhance investor protection and improve issuer transparency. These amendments restrict the ability of market makers to publish quotations for those companies that have not made required current financial and company information available to regulators and investors.
Ahead of the regulatory enforcement date, we will only accept orders to liquidate positions (i.e. no new buy orders) starting August 13, 2021 . After the amendment officially goes into effect on September 28, 2021, it may be more difficult to liquidate these securities. Quoting and market liquidity may also be very limited.
What this means for your account(s). You are receiving this notification because you currently hold one or more of the impacted securities in your account. We’re including the list below but be aware that it may not include all of your impacted securities. There is also a chance that the impacted companies could come into compliance with the regulatory requirements ahead of this date and be removed from the list. MDMN,
You have multiple options to consider, such as:
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Take no action . You are not required to sell these securities; however, starting August 13, 2021 we will restrict these securities to liquidation-only transactions. You may continue to hold them, but you may have difficulty selling them in the future and there is no guarantee as to what their future value will be
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Place trades to liquidate . You may place trades to liquidate these securities now. Due to the uncertainly, we cannot guarantee there will be sufficient liquidity to close your position(s) in the future.
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Transfer your positions to another financial institution . Other U.S. financial institutions are also impacted by this amendment so you may have difficulty transferring them out of TD Ameritrade. If you are interested in transferring the assets, please submit any outgoing transfers requests to us. (These transactions may incur fees or commissions, depending on the asset type.)
Perhaps with this new SEC rule forthcoming management will hasten the conversion from Medina to Auryn.
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Mike, Please explain why the September 28 date will be a non-event for Medinah. I don’t understand.
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Judge,
I’m comfortable with the notion Auryn/Medinah are doing what is needed to be in compliance with all applicable securities regulations. I suggest you keep on an eye out on the OTC for updates. This issue has not gone unnoticed with Medinah. The regulation has been on the books since last year. It appears only now that some shareholders are finding out about it. Ultimately, this new rule will get rid of lot of derelict trading shells that shouldn’t be trading. Although it might not seem like much of the time the last couple of years, Medinah is still functioning and has a valuable asset that allows it to do what is needed.
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Thanks for the explanation.
Here’s the text of the new SEC Rule regarding 15 c 2-11 and public disclosure of information:
The SEC doesn’t want market makers to make markets in “thinly traded securities of an issuer with limited assets” because of the existence of pump and dumps. A quote from the text is: “Because a pump-and-dump scheme often involves a thinly traded security of an issuer with limited assets, this exception recognizes that such fraudulent and manipulative activity generally does not involve issuers with substantial assets.” So, the SEC set up several exceptions so that legitimate companies with legitimate assets don’t get ensnared in this new rule. We need to remember that Medinah is simply a “holding company”. It is basically a safe deposit box that “holds” 16-plus million shares of Auryn which represents 24% of the entire ADL Mining District as well as 11-plus million shares of AMNP which holds the Caren and Puange placer properties at the ADL’s northern border as well as the Llano, Mali, Fortuna (not the Fortuna Mine at the ADL) and the Poseidon.
Medinah’s refusal to pay the accounting and legal fees in order to provide public information made perfect sense because Auryn makes all of those filings and their Auryn holdings probably represent 95%-plus of their assets. This new rule may or may not force Medinah to pay some back fees in order to get back into compliance with the OTCMarkets-PinkSheets. Medinah is hardly a “thinly traded security with limited assets”. One exception to this new rule is covered below in Section “F” of the new rule:
“F. ADTV and Asset Test Exception—Rule 15c2-11(f)(5) To provide retail investors with greater price transparency, and to reduce burdens on broker-dealers in publishing quotations for highly liquid securities of well-capitalized issuers where the Rule’s goals can be achieved through alternative means, the Commission is adopting the ADTV and asset test exception substantially as proposed, with modifications, as discussed below. Specifically, the proposed exception would have permitted a broker-dealer to publish or 388 SIFMA Letter. 122 submit quotations without complying with the information review requirement where: (1) a security has a worldwide average daily trading volume value (the “ADTV value”) of at least $100,000 during the 60 calendar days immediately before the publication of a quotation for such security, and (2) the issuer of such security has at least $50 million in total assets and $10 million in unaffiliated shareholders’ equity as reflected in the issuer’s publicly available audited balance sheet issued within six months after the end of its most recent fiscal year.389 In addition, the proposed exception would also have required that paragraph (b) information about the issuer be current and publicly available.390 The Commission sought comment on such an exception. Commenters expressed support for an exception for highly liquid securities of well-capitalized issuers.391 Because a pump-and-dump scheme often involves a thinly traded security of an issuer with limited assets, this exception recognizes that such fraudulent and manipulative activity generally does not involve issuers with substantial assets.392 The Commission believes that the exception (i.e., one that is based on a security’s ADTV value and the issuer’s total assets and shareholders’ equity) will help to ensure that the Rule’s policy goal of deterring broker-dealers from commencing quotations for quoted OTC securities that may facilitate a fraudulent or manipulative scheme is not undermined.393 Further, the Commission believes that the exception’s three thresholds of ADTV value, total assets, and shareholders’ equity are tailored to appropriately capture issuers of securities that are less susceptible to fraud and manipulation based on the liquidity of the security and size of the issuer.”
Depending upon the upcoming roll out in gold production, Medinah may or may not qualify for this particular exception. This could play out in any of a number of ways. Medinah obviously has a built-in “hedge” against anything bad occurring. They own a fourth of the action at the ADL Mining District. If a dividend stream becomes a reality, then this safety deposit box will be stuffed with cash. This opens up the possibility to buy back and cancel shares so that each current shareholder owns that much higher of a portion of the 16-plus million AUMC shares and the dividend flow that might represent. Cash dividend distributions apply even to RESTRICTED shares sitting in the Treasury. If Auryn started generating significant revenue then they could conceivably buy back and cancel some of their 70 million outstanding shares. This would make Medinah’s 16-plus million shares represent a larger percentage of the ADL and a larger percentage of any future cash dividend flow. A key concept at play is “mine life” and how long any cash dividend flow might last. This is where the difference between an epithermal and a mesothermal deposit comes into play.
Theoretically, Medinah could go private. If somebody wanted a 24% stake in the ADL in one fell swoop then theoretically Medinah could be taken out. A major miner wouldn’t care if those 16-plus million AUMC shares are currently RESTRICTED. Another factor is how does the Biden administration plan on taxing dividend income. We might want dividend income instead of capital gains taxed at some usurious rate. As mentioned by a forum participant, all of this might result in expediting the distributing of the AUMC shares.
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Nice to see that they bought a larger tunnel loader.
This brings things up to a new level.
Look at the videos you see it’s a low slung loader with smooth tires, and side saddle seating easier to drive in both directions made for dead end tunnels. The highest part being the safety cage for the operator. I dare say it will be doing double duty outside the tunnel for now, and inside as they expand it for this machine.
This should step up ore production, as the baby skidder can stay in tunnel and pull back blastings, help load bigger loader, fill an level the road base, and a number of things the large one can’t. This loader could bring out about 6 times what the baby skidder can. These are real workhorses.
Dusty dirty work. Thanks guys.
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Take a look at the latest twitter post. I don’t think they’re done with purchases!
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The weather is looking marvelous dahling for the winter!
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Got the perfect name for that! Let’s call it the Green Machine!
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Well, if they’re making more purchases, maybe they’re figuring on working more than one face at a time? That’s the suggestion here. Good.
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It’s a clear indication they are ready to start up the targeted 40 tpd. They wouldn’t buy the equipment if they weren’t going to ramp up to at least that level. We’ll see what permitting and other things are required to up the production from there including apparently a concentration plant.
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I like new big trucks and new tractors!
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Hi CHG,
Thanks for all of your valuable input! I think the allowable production levels from SERNAGEOMIN is still locked at the previous 5,000 tonnes per month level. Based on 25 working days per month, this would allow 5 working faces, each cranking out 40 tonnes per day, to simultaneously be in operation.
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A question that should be answered soon is: Who?
… is this fairy god-father …???
In small scale "private"mining operations there are many cases where some white knight rescues the Princess.
That can be a secret being its a private endeavor.
But “NOT” us …! Right? You have a set of rules to go by.
I know there are some better persons on this board that can explain this better in Laywer-speak then myself. . So Please do.
** By the way that truck they are showing/looking at in tweet is a Chinese made FAW JH6 , loader also made in same country… ö
It’s a valid question. Even an interest free loan is a liability as it will be repaid through profits/production. Given these company’s checkered past, accurate financial reporting (even on the OTC) should be a priority. I assumed that the loan had not been made unitl the second quarter (as the first quarter had no reference) but, based on the updates its clear AUMC has been spending money to assay and mine since early in the year. I’m not a lawyer or CPA but understand basic reporting requirements for public companies and, for those that are invested here, there are already so many unknowns. Some visibility on the quantum and payment obligations of the “fairy God-Father” should be demanded. It’s not like their “hand shake geneoristy” isn’t moving the company in a positive direction.
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