Per the April shareholder update:
" … bringing our total authorized production capacity to 3,000 tons per month by the third quarter of 2025."
I’m thinking that’s what these men intend and that it’s gonna happen.
Another 5 weeks, we begin the third quarter - we’ll get an update in early July and will have a better idea of what’s actually happening.
What can they do with their earnings? Pay-off debt, expand, and/or distribute to shareholders. What will they do? Hmmmm …
LOL WOW, we are both still alive! And our once little kids are now adults.
Is the plant completed? Are we going to be producing and cash flowing in July? In what order of priority is the positive cashflow going to be assigned? (fiancier loan, MC loan, exploration, dividends).
What is the cashflow forecast? This is a public investment in case they forgot. They promised transparency including cash flow projections specifically mentioned in previous updates. Time to start opening the news flood gates. Gold prices are booming and the decision to build a plant was a strategic one, so start sharing the forecasts.
Wiz, Wiz…Bueller, Bueller?
Maybe he knows this and execute at $5000 per oz
Question regarding Medinah going to the grey market
I was involved with a stock that ended up going to the grey market and after a certain amount of time on the greys it was dissolved and everything was lost. Can this happen with MDMN?
Why not ? Admin loses X amount of MDMN shares but then AUMC gains 100 % of the assets bought (stolen?) from Medinah. Nothing nefarious here. Just BUSINESS. Suck it suckers !
I know the previous post will probably be taken down, save it. This crap has happened before, and will continue again.
Some people would not take losing large sums of money to a scam without consequence to the scammers if this dissolves
Everyone should be concerned if you have MDMN shares. We have not heard a peep from management on the conversion. They didn’t mention anything when the company went dark and we were trading with 0 Bid and 0 Ask. The Gray Market is not somewhere you want to be. That there should be alarming.
MDMN shares not likely to be dissolved according to Wizard’s post from March 14, 2025:
So let me get this right, all the assets were transferred to Aumc for $0 in return and we don’t know if and when we get our shares of Aumc. Got it. I hope the company understands that being on the Grey Market for a certain amount of time is not where you want to end up at.
I would think a majority of folks on this site have MDMN shares. I for one have WAY more than AUMC, around 11M opposed to 8K.
I’ve been saying the same thing……we deserve an answer to when our money which bought the asset gets converted the same way AUMC managed to use virtually no money to take over our company assets. The shell game……maybe someone can explain!
Here’s a link to an explanation on the differences between the “Expert Market” and the “Gray Market”. These are 2 very different entities created for very different purposes.
Kevin was correct when he stated that Medinah’s allocation/distribution process is somewhat complex. My gut, and this is only a theory, is that the allocation/distribution process for Medinah’s 16.4 million “AUMC” shares is awaiting other events to occur especially in regard to Auryn firstly, commencing very high-grade gold production at a time in which the price of gold is at or near all-time highs. This is transformational. Secondly, Auryn’s plan is to become “fully reporting” to the SEC and filing audited financials. Thirdly, Auryn’s plan is to up-list to a loftier trading venue which they would qualify for by going into high-grade gold production and generating free cash flow.
The SEC has historically not been a big fan of the OTCMarkets group (PinkSheets, OTCQX, and OTCQB) which are more lenient than the SEC in regard to the provision of information to potential investors via things like a prospectus or the need to provide audited financials.
Congress, however, ruled that young development stage corporations often can’t afford to be “fully reporting” to the SEC (think Sarbanes-Oxley 404), so, they deemed it OK for the OTCMarkets to provide an “incubator” for development stage corporations to develop in, so as not to disrupt the “capital formation” process.
The way the SEC sees it, the shareholders of Medinah deserve “investor protection” (one of their 2 primary mandates) and the Medinah shareholders have a right to know everything there is to know about Auryn shares as might be revealed in a prospectus for an IPO or through the filing of (unaudited) 10 Q’s and audited 10 K’s. The SEC’s other primary mandate is “to provide fair, orderly and efficient markets while facilitating capital formation”.
The level of information the SEC wants to be provided by corporate issuers is contained in the quarterly 10 Q’s and audited annual 10 K’s as well as periodic releases of material information via 8 K’s (material event reports or “current” reports). Auryn would like to eventually attract institutional investors. Institutional investors, in turn, want to be “derisked” by the presence of an auditor attesting to the validity of the information contained in the financials.
Being on the “Expert Market” is a mixed blessing in the case of Medinah. The shareholder’s temporarily lost liquidity which sucks. But, on the other hand, Medinah no longer needs to pay accountants, lawyers, and the OTCMarkets their fees while inhabiting the safe harbor provided by the “Expert Market”.
Since Medinah is technically a “holding company” with no operations of its own, it “holds” shares of AUMC (and American Sierra), and all of the information the Medinah shareholders need is already contained in Auryn’s quarterly filings and the older Medinah filings.
As far as Medinah putting out a press release that they are about to go to the “Expert Market”, the risk there is that naive shareholders might have hit the panic button and dumped their shares thinking that being on the “Expert Market” is tantamount to going bankrupt, which is far from the truth.
In actuality, the “Expert Market” provides a “safe harbor” for development stage corporations that are in transition and have voluntarily “gone dark”.
During Covid, a lot of development stage issuers sought refuge on the “expert market” when supply chain issues arose and affording to pay fees to the OTCMarkets group and file quarterly “information disclosures” on the PinkSheets became cost prohibitive. The PinkSheets will welcome back “expert market” companies with open arms partly because they (the OTCMarket group) are in it for the fees that corporations pay them.
As I understand it, to be reinstated on the “Pinks”, Medinah would simply have to refile their missing quarterlies which shouldn’t be that difficult because they have no operations of their own. A “holding company” like Medinah is like a safe deposit box with some stock certificates in it.
Medinah “holds” 16.4 million shares of “AUMC” which is a 24% stake in the entire ADL Mining District. Holding a 24% interest in a very high-grade gold producing asset when the price of gold is at or near all-time highs is a far cry from going bankrupt but investors unfamiliar with the OTC markets or the mining industry might not know this.
In the junior mineral explorer/developer sector there is no more exciting time than that associated with an explorer/developer successfully checking off on all of the boxes needed to get a mineral prospect into PRODUCTION. This is often associated with a market “re-rating” in the share price of the company going into production.
Keep in mind that Auryn has made ZERO promotional efforts to date. They didn’t have to for the usual reasons in that Maurizio was constantly advancing cash at zero interest cost. Most junior explorers need to constantly be on the promotional bandwagon in order to keep their share price propped up because they’re constantly selling shares, often at steep discounts to the prevailing price, just to fund developments.
You can see the trade-off for shareholders as a little bit of promotion would have been welcome during the downticks especially for the Medinah shareholders. The trade-off is promotion to address downticks versus the free use of somebody else’s capital i.e. zero cost of capital, and a whole lot less DILUTION of the share structure.
As a mining corporation, Auryn is an outlier in that they opted to build their corporation via a process known as “bootstrapping”. A generous insider volunteered to provide all of the cash needed to advance the property all of the way into production while charging zero interest. This circumvented the massive levels of share structure DILUTION suffered by the other 99% of mining corporations that pay for development expenses by performing “equity raises”. These involve selling shares out of the Treasury often at steep discounts to prevailing share prices due to the inherent risk associated with the mining sector.
Holding off on the Medinah allocation/distribution process until Auryn goes into production and hopefully the Auryn share price goes on a run would mean that Medinah would have to sell less of its “AUMC” shares in order to retire its remaining debt. This would leave that many more of the 16.4 million AUMC shares available to all Medinah shareholders OF WHICH MAURIZIO IS THE LARGEST. Being the largest Medinah shareholder, Maurizio has no motive to screw the Medinah shareholders.
Auryn’s post-production planned uplisting to a higher trading venue should theoretically enhance the universe of potential investors. Most small institutional investors can’t touch a company that is not fully reporting to the SEC and willing to provide audited financials.
The key event in this scenario is clearly the commencement of very high-grade gold production at a time in which the price of gold is at or near all-time highs.
That brings to question how many MDMN shares are part of the allocation. Between all of us, we must have well over 100M shares of MDMN. Maybe I’m not using the proper math equation, but 16.4M shares of AUMC won’t be enough — Not even at a 1 for 3 conversion rate.
Auryn will need millions of AUMC shares earmarked for fair distribution. The MMs filled our buy orders with millions of non-existent shares as they attempted to shut MDMN down. I have no doubt AUMC shares will be allocated, I’d just like to know how.
I generally prefer “value” investing where I hold a stock a year or more to avoid excessive capital gains taxes. My favorite strategy is to take profits on stocks accumulated over a number of years where I trade around a core, and buy back on dips . Occasionally I trade short term in a fast moving market where I have not already accumulated a core position.
You’re not too late. These two stocks are slow moving. I buy incrementally, usually at the bid or lower in small lots. You should know, though, Schwab is not friendly on stocks trading under a dollar. Check their fees and be sure a trade makes $ sense. I don’t trade penny stocks in Schwab.
It has been mentioned many times that the conversion rate will be approximately 200:1. I believe that was based on the number of MDMN shares outstanding. Not sure who originally came up with that rate.
Yes, 200:1 was stated years ago. Speculation that we’ll get 5000 shares of AUMC for every 1M MDMN we have. I can’t find where anyone mentioned 3 MDMN for 1 AUMC. That can’t be right. That’s not for Medinah, that’s what they did with CDCH.
If Auryn is waiting for the share price to increase after production, there’s not much difference between allocating 16.4M shares of AUMC at a higher share price later — or a 200:1 distribution right now.
I digress.
Hi MDMNJaded,
The math goes something like this: Medinah has about 2.88 billion shares outstanding. They own about 16.4 million shares of “AUMC”. This translates into the need to transfer about 175 Medinah shares for each “AUMC” share you want to receive. This means that with each Medinah share submitted for conversion, you will get about .0059 shares of AUMC. This assumes that Medinah has no debt which isn’t accurate.
The reality: Medinah still has a little bit of debt outstanding so some of those 16.4 million “AUMC” shares held in the Medinah coffers, will need to be sold prior to the allocation/distribution in order to retire the debt of Medinah. The debt is/was somewhere around $400,000 and there is no interest being charged. There will also be some legal/administrative fees involved in carrying out the allocation/distribution process.
Let’s say that it will cost about $200,000 to pay these legal/admin fees (a total guess). This means that Medinah’s total debt would be about $600,000 (the original $400,000 plus $200,000).
A hypothetical: If Medinah could sell 1.2 million of their 16.4 million AUMC shares at, let’s say, 50-cents, they could raise the $600,000 need to be debt free, but lose 1.2 million of their 16.4 million AUMC shares leaving them with 15.2 million shares to distribute to the holders of Medinah’s 2.88 billion shares. Under this scenario, each Medinah share tendered would earn .00527 “AUMC” shares. The inverse of this is the need to tender about 190 shares of Medinah to earn one “AUMC” share.
This is your “about 200 shares” of Medinah needing to be tendered per AUMC share received. This is also your “AUMC should trade at about 200-times that of Medinah” at any point in time back when both stocks were trading.
If, if, if Auryn is in high-grade gold production at a time in which the price of gold is at or near all-time highs, then they’re likely not going to have to sell anywhere near 1.2 million of their 16.4 million AUMC shares in order to raise $600,000.
In the junior mining sector, the one event that leads to the most predictable explosive increase in share price for a junior explorer/developer is making the successful transition into becoming a “junior producer”. If the project going into production is a very high-grade vein deposit, then that’s all the better. If the transition to becoming a “junior producer” just so happens to occur when the price of gold is at or near all-time highs, then that too is all the better. If the ALL IN SUSTAINING COST (AISC) to produce each ounce of gold being produced (in a “float concentrate” format) is extremely low i.e. at or near $800 per ounce, then the marginal profit per ounce, and the profits generated, can be extremely robust.
The assumption here is that the share price of AUMC should go up (perhaps significantly but there can be no guarantees) when the investment world figures out that they are likely to make some significant profits over time. If a lesser amount of AUMC shares needs to be sold in order to retire the debt, this would leave that many more of the 16.4 million AUMC shares currently in the Medinah coffers for each one of us.
You might be able to sense the pressures on both the Medinah and Auryn management teams, if they are in a position to know that the AUMC share price is likely to go up significantly in the near term because of going into production. Selling a large number of AUMC shares at a certain price right before a predictable significant move upwards in the share price of Auryn would not reflect well on management.
The 4 main unknowns are firstly, how much is Medinah’s total debt including the legal/admin fees for carrying out the allocation/distribution. Secondly, how much can Medinah get for the AUMC shares they need to sell in order to retire that debt. Thirdly, what share price response by the market is expected once high-grade production has commenced at a time in which the price of gold is at or near all-time highs and the AISC is extremely low comparatively? Fourthly, how aggressively can Auryn ramp up mining production rates within the adit as well as the “throughput” rate of the new froth flotation plant once production has commenced.
Looks to me like MC is doing the best thing for MDMN shareholders. There is absolutely no reason to believe he would do otherwise - and we should be very thankful he is looking out for us.