The Mining Play

CDCH - Discussion

CDCH Discussion – Fire away!

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Thanks…

Anybody have a tank!

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It looks like there was a little accident and one of the moderators deleted the CDCH discussion topic when trying to administer last rights to a bothersome user. :slight_smile:

Not too much was on there so rather than restore the forum from last nights backup and lose all of today’s discussion here. Let’s just continue the CDCH discussion on a new topic. Topic created . . . have at it.

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Is it possible to put back up some of the past discussion. Someone made a really good explanation about how nothing has changed with our CDCH shares, just the property that we own has changed. I’d like to look at it again.

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It was @cornhuskergold.

Basically here is what happened. CDCH owns Cerro Dorado Chile. Cerro Dorado Chile had two properties. They sold those properties to Auryn Mining (a private company) and received equity in Auryn Mining (a private company) as compensation for the two properties.

You still own CDCH shares - and CDCH still owns Cerro Dorado Chile. Nothing has changed there. But now instead of Cerro Chile owning two properties, it owns an equity stake in Auryn Mining.

This is exactly how it will work with MDMN per the contract. When Auryn exercises the option, Auryn will own 100% of the ADL properties and MDMN will get 15% equity in Auryn.

As far as CDCH it remains to be seen what percentage they received.


If at some time in the future Auryn Mining becomes publicly trading, then CDCH may dividend those shares in Auryn Mining out to shareholders (at least it’s theoretically possible.) I doubt that would happen though.

More likely Auryn Mining remains private for the time being. If it distributes a dividend to its shareholders through early production cash flow, then Cerro Chile will get that dividend. Presumably they will then use that and distribute to shareholders or pay bills or buy another mining property.

It goes without saying that most CDCH shareholders on this thread down’t want CDCH to do anything but return any cash flows to the shareholders.

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It should go without saying, but I’d prefer not to assume.

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Any possibility of returning the old content?

There were some very important posts found in the “old thread”.

thanks!

So it appears that Cerro shareholders have received shares In a private company in exchange for the Cerro properties. I am just curious if Juan and Les received the same compensation for their shares?

If Juan and Les had shares of CDCH USA, they are still shareholders of CDCH USA. CDCH USA still owns Cerro Chile. Cerro Chile is still the owner of the shares and LP is still the trustee of Cerro Chile.

My understanding is they had some kind of resolution and rewound the 50% property interest that JJ had and in the end it was 100% Cerro Chile selling the property and Cerro Chile received 100% of the compensation, i.e. shares of AMC.

If the above is correct (let’s wait to see what the Days have to say) then Cerro Chile no longer has any property and now has shares in AMC. That brings up some interesting questions.

  • Is CDCH USA capable of holding shares of a private company in Chile?
  • Can Cerro Chile be eliminated and the shares transferred to control of the BOD of CDCH?
  • Is there any requirement or need for Cerro Chile to remain?
  • Are the shares in AMC assignable?

Best case in my mind is for CDCH and MDMN (after option exercise) to dissolve the Chilean sub companies and the US companies gain direct control of shares in AMC. I just don’t know if that’s possible while AMC is a private Chilean company. It may be more likely if it trades as a public company and the shares that CDCH and MDMN own are shares of a public company.

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That’s all nice and dandy, Kevin, and potentially I don’t see any problem with it. As a matter of fact I also see potential future share appreciation and I am delighted with it.

My only concern is liquidity. I do not need to sell any of my positions in MDMN or CDCH and I can hold as long as it takes to have a very profitable exit but that’s not the case for others.

Do you see any liquidity problem with this move?

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Just to up the discussion, at this time both MDMN NA and CDCH NA “HAVE” to have a corporation in Chile to do business in Chile. One other requirement is that the corporation have two opporating members legalized to do business in Chile…

Does anyone else see the issue?

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thats good to hear was wondering how I would sell if I wanted to get out without auryn being public

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I wouldn’t anticipate any problems, as long as the right news comes out and attracts market interest. Which brings us to the point, do we hear from the Day’s this week about the sale of the properties?

Cerro Chile’s deal with AMC has no impact on your liquidity. NONE! I don’t understand why that’s a concern. When Cerro Chile had two properties you were able to buy and sell your CDCH stock on a US exchange. Now Cerro Chile has sold the property for shares in AMC. NOTHING has changed with our CDCH stock. Same stock, presumably the new underlying asset has like value (with more upside); CDCH is still completely liquid on the exchange. You’ve been able to buy and sell all along.

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I am not a CDCH shareholder, but one thing to keep in mind is if CDCH’s only asset is shares of AMC, public or not, it would probably fall into the SEC’s definition of a “shell”. While this would not impact trading, the Company would lose it 144 elgibility. Meaning it can’t issue free trading shares and the shares it could issue would be resticted and stay resticted until the Company filed an S-1 inlcuding audited financial statements.

This could become problematic as it does cost some money to maintain a public vehicle (accountants, legal, OTC Markets, website, etc.). Albeit, not a lot, but probably $20k/year with the Days not receiving a dime.

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Cerro Dorado, Inc., Issues Statement Regarding Recent Events

Feb 11, 2016
OTC Disclosure & News Service

Salt Lake City, UT -

Cerro Dorado, Inc., Issues Statement Regarding Recent Events
February 11, 2016
Cerro Dorado, Inc., a Nevada Corporation (the “Company”) advises of the following with respect to rumors and news releases of other corporations:

  • Any news you may have heard (by way of statement by any other corporation or individual) with respect to the Company and Cerro Dorado Chile’s holdings on Altos De Lipangue should not be considered that of the Company’s and we decline to comment further on conjecture.
  • Management has received several inquiries regarding its part in discussions/negotiations respecting claims owned by Cerro Chile. Although U.S. Management was not directly included, the Company’s trustee was present on the Company’s behalf.
  • Additionally, we have received many inquiries regarding a public statement by the Company (or lack thereof) following statements by other corporations respecting changes to ADL properties. Although we have been advised that something happened, management has not been in a position to release any factual information as it had not received copies of the relevant contracts as they awaited notarization and finalization. Contracts purportedly reflecting changes to the structure of ADL claims, including those of the Company, were provided to Management on February 10 which are, however, completely in Spanish. The documents in question have been forwarded to a translation service company and we expect to receive the contracts in English by the middle of next week. Upon receipt thereof, Management will conduct an expeditious review and again report to shareholders.
    This is the only statement Management will provide until such time as it is prepared to report on the contracts provided to it.
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A few .005’s and .006’s were gotten by someone this morning. I think those are pretty good buys. IMHO

This post was flagged by the community and is temporarily hidden.

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Didn’t know there were a lot of nerves around here, and wasn’t trying to calm any. Just remarking on those buys. Making me think I should keep some buys in at that range and see if I can get some more is all.

Maybe tomorrow the Days receive the contract and start to the translation process so they can inform us all?

Contracts purportedly reflecting changes to the structure of ADL claims, including those of the Company, were provided to Management on February 10 which are, however, completely in Spanish. The documents in question have been forwarded to a translation service company and we expect to receive the contracts in English by the middle of next week.

Sounds like the Day’s will have the translation tomorrow.

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