Does this mean JJ. will have to give them up?
Thanks CHG.
Usual, as it relates to the reverse split did they provide details and schedule? I wonder if they will do the reverse split before moving the shares into the private company or as part of that process.
So how will all of this work? If current CDCH shareholders become shareholders of a private holding company, does CDCH become a shell for the new initiatives? Do current shareholders participate in that company as well? Thought?
Yes. Yes. They can not take your CDCH shares away other than reducing them for the RS while raising the price.
You will get shares in the PRIVATE_HOLDING_CO in addition, which will represent ownership in the 5% AMC that is being split out.
I believe, if you own CDCH in street name via your broker then the broker will receive the dividend PRIVATE_HOLDING_CO shares or maybe they will just receive a request for names and addresses and will have to ask each individual for permission to release the info. I donât know. There is no normal way for them to hold private company shares for you as far as I know, at least not the lower end retail brokers.
It is still somewhat unclear to me how the shares get broken up and get to you because shares are not registered with a âTransfer Agentâ in a private company the way it is for a publicly traded one. A private company is registered in the state of incorporation and the shareholders are legally registered as shareholders. Somehow there has to be a conversion of the number of street owned CDCH public shares with the brokerages into real names and addresses that can be registered as shareholders of the PRIVATE_HOLDING_CO. Iâm not sure how that happens. Hopefully the brokerages do not try and exact a big fee for the process.
Then since you have no easy way to sell, you basically wait for Auryn to come and buy the 5% AMC shares from the PRIVATE_HOLDING_CO and then you should receive your distribution of cash from the PRIVATE_HOLDING_CO. Hopefully.
This seems to imply some type of future meeting of the PRIVATE_HOLDING_CO shareholders to discuss such an offer.
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Thanks for taking the time to share your thoughts CHG. Very much appreciated.
Well, this is going to be interesting. And Iâd guess that depending on the outcome, could be the model for MDMN as someone suggested.
This definitely sound interesting and I too believe the Days are stand up guys when it comes to CDCH specifically because they were very big common share holders in CDCH via their Family holdings before they took their management position in the company.
What will be the interesting part is how people are getting their certificates in the private company. If there is any short position it would definitely have to be covered, since I canât see how the shorts can manufacture certificates in a private company. The only concern I would have is what happened to those individuals that held certificates in Medinah Gold that never got there shares in the merger with American Sierra Gold. I am not sure what happen there, but I would sure hope that this could not happen here as well!
Apples and Oranges. With MDMN Gold, insiders in MDMN collaborated with insiders of AMNP (Gary, Vital) to fleece holders of the private certs. A prospectus for the share swap was posted (without any disclosure) with a 30 day window for MDMN Gold shareholders to fill out paperwork and follow a number of steps that would have been impossible to complete within said 30 day window (even if you were lucky enough to stumble upon the prospectus when it was issued).
This is a private âspinoffâ occurring in the light of day. Not a merger where one party is incentivized or able to take/steal other peopleâs interest. Every shareholder of CDCH on record will receive their proportionate ownership in the private company. As a private company, overhead expenses will be next to nothing so we wonât suffer from dilution while waiting for an ultimate tender offer.
The Days may not be experts in running a bulletin board company but, as transfer agents, they are more than capable of setting up beneficial structure. CDCH shareholders are giving up liquidity but MDMN shareholders are facing some unknowns related to further dilution. CDCH shareholders will have a chance for a squeeze and will now be holders of a new venture run by George (expect a lot of dilution on the public entity once AMC is backed out).
Looking at this from a âportfolio standpointâ, CDCH is the long term call/leap on AMC and MDMN is the equity play.
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Did they release the date of record you had/have to be a shareholder?
Thank you, John, for your input.
Letâs assume for a moment that this phantom squeeze is not a mirage but it truly happens for a change.
If our shares are spun off into this private entity and we cannot sell until a TO, how could we take advantage of the squeeze and exit?
Would we still have some time to enjoy the squeeze before we get âspun offâ?
I perfectly understand what is happening with CDCH, and I suggested the same thing years ago in relation to Medinah, What I did not understand is how certificate holders got screwed with Medinah Gold and why no one took action to bring them to court on their deceit! Thanks for that information!
I would just caution that you do not put the Days on too high of a pedestal, only since as much as they appear as straight shooters and I have had only good experiences with them as well, you should understand that they were brought in by Les and Les has strong ties with the Days. Also do not forget the Days were involved in Medinah Gold. I am not implying there will be any shenanigans with the CDCH, just a little caution can go a long way! JMO
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Roberto,
Assuming there is a record date still in the future to be announced (UusualSuspect PMâd me that they could not use the AGM date because that item was not on the meeting agenda - thus there must still be a record date to be announced imo) a squeeze would happen when the spin off is announced but before it happens, when any naked shorts realized they would not be able to come up with shares of a private company to distribute to CDCH shareholders who rightly believe that they should receive such a distribution. So the shorts would be highly motivated to cover those shorts (buy back those shares from shareholders) before the record date. So any squeeze that may happen would be in CDCH shares not the PRIVATE_HOLDING_CO. The other side of this is that if you did sell at that time, you would potentially / probably miss out on the PRIVATE_CO share dividend on those shares sold.
Again, I am NOT saying it WILL happen.
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The BOD / Days donât think there is any huge short position with CDCH so Iâm not expecting much of a squeeze. Besides, for it to be a squeeze on such short notice any shorts would have to be paying attention. I doubt they are. 
My thinking is buy more stock prior to the record date. The company will want to support the price once the RS is done. Sell then and basically get an increased percentage of private-co for free. Itâs a gamble for certain. I may try it with a small bit. Iâm not expecting much from the CDCH company post RS / private-co.
Also, this was voted in the affirmative per Usual, but it still has not been financed. They still have to raise the money. No guarantee there and no guarantee the terms wonât change. Itâs one thing to ask shareholders to participate in a rights offering. My guess is the terms will change if they canât raise it from the shareholders. Weâll see.
All good reports from Usual.
P.S. It is said JJ got half of CDCH because bills werenât being paid. If thatâs the case then how did GC and LP get 17 million and 20 million shares of CDCH? What was the consideration? âConsultingâ hours? If they put in cash for that where did it go?
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I wonder how they are going to determine who the âcurrent shareholdersâ are ?
Like Medinah, they only have info on share certificates, not the beneficial shareholders.
Rod
There was a NOBO/OBO list.
My recollection (as best I can recall) in addition to certificate holders with names provided, there are only about 1500 individual shareholder accounts on the list. As CHG, BE and Karl have indicated, the brokerages will be responsible for distributions from AMC.
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This is true. George and Jose (Yunge) indicated that they would be keeping and offering similar terms to their contacts to get this cash flow endeavor off the ground, but shareholders will have the first opportunity to fund.
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Wiz, you are correct in the difficulty of raising the money from the shareholders for the rights offering. If and when they go elsewhere for the money the terms may get ugly. I expect large dilution but Labertew will do his best to not let it get out of hand. He is working for stock. Our future is in the private company, just as before, anything from the ânewâ Cerro will be a bonus. IMHO
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For not being much of a notetaker Usual, Iâd say you covered the 3 1/2 hour meeting quite well! 
Thanks for all the posts and the summary of salient information.
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Nice to meet you there, easymillion. Thanks for making the trip. Yours was five hours, mine was only 15 minutes.
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Understood, but Patrick has followed through on everything Iâve discussed and, at times, advised him on. I donât believe the Days have any long standing allegiance with Les/JJ. Requiring JJ to return shares is a good sign of the Days healthy distrust of these men. I canât hold the transfer agent at fault for the MDMN Gold/AMNP fleecing. Unlike our new MDMN BOD members (Vital, Gary) they had no input or oversight re: the transaction.
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In reviewing my notes and materials, these are tailings left-over from an IOCG deposit where copper was mined and extracted. The tailings were generated by flotation of the crushed ore prior to further processing (edited by me for accuracy to clarify). At least, that is my understanding. A presentation of the proposed project was presented which is designed for early cash-flow on a small scale with additional projects in the pipeline, rather than a longer-term project with large CAPEX. All equipment is modular and can be moved with relative ease and would initially be located on site with existing water and electricity. It is a rather modest project headed by a new experienced BOD. The new Cerro Dorado BOD would like to revitalize CDCH to a status much like it was in the very early days with less than 20M shares initially, which will likely grow percentage-wise after full funding of the projects that are envisioned and are fairly straight forward. Note-the following outline is not the most current assessment of the project which is even more profitable than shown here. Additional environmental and chemical studies have been performed which are not shown in the following early outline of the project:
La Serena-Alto Adigio Project.pdf (6.0 MB)
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