The Mining Play

CDCH - Discussion

Here’s the simple way to look at it… If two shares of MDMN are cheaper to buy than one share of CDCH, I would go for the MDMN shares (as long as you don’t mind holding the CDCH shares from MDMN for a year after you get them, which shouldn’t be a problem if you’re in this for the investment and not the trade).

Interesting, that’s not how I understood it. I’ll go back and re-read the release. Thank you for responding. You’ve always been one to do that even when I’ve been frustrated to the max. This has certainly been a learning experience nightmare stock to own. Maybe the mountain will win out before we all croak! Thanks TR.

oz

I don’t check in here as much as I used to so glad I happened to catch your post early enough to be helpful. I’m not nearly as involved or informed as I used to be, but happy to be able to do something.

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Here’s the post from Kevin…

"I don’t know the mechanics at this point. I don’t think (AMC/CDCH) does either. That will more likely be something that the security attorneys workout.

I have made a plea to management that it be done as quickly as possible, that if it is at all legally possible, MDMN shareholders get unrestricted shares, and that it be something that is done without anyone having to request certificates and manually exchange.

My personal hope is that one day I have CDCH shares in my account in place of the MDMN shares at the assigned conversion rate.

That said, after the distribution MDMN will be a worthless shell. I don’t think they can simply remove my ownership in the worthless shell. So it may be that I have millions of MDMN shares that have no value. Eventually I expect someone will assume control of the shell, clean it
up or otherwise dissolve it."

I can see where one might get confused because he states that he would like CDCH shares to replace MDMN shares, but in the next paragraph he doesn’t think they can remove the MDMN shares from his account, (which they can not), so we’ll be left with our MDMN stock still in the account but with no value due to the company moving on with all the assets in the CDCH shell.

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“I can see where one might get confused because he states that he would like CDCH shares to replace MDMN shares, but in the next paragraph he doesn’t think they can remove the MDMN shares from his account, (which they can not), so we’ll be left with our MDMN stock still in the account but with no value due to the company moving on with all the assets in the CDCH shell.”

Personally, I have never seen anything like this. Taking shares that can be traded from one company, reducing the amount one owns by about half into another company and restricting that same person from trading them for a year! Oh well, just another Wow! owning this mining stock. Thanks again TR. It’s a good thing I walked with my better half this afternoon cause she probably just saved me from blowing another gasket thinking about this investment. Onward and upward. GL to you.

oz

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Thanks as always TR for your input. I do not mind waiting the year. But was does concern me is after the year is over. Will the shares become unrestricted without incident? And if so, there will be a mad rush to sell the stock especially if there has been significant appreciation? I am not looking forward to those scenarios. Plus we must wonder how the initial conversion will go. I remember when they distributed the dividend, it wasn’t exactly smooth sailing. I am just looking forward to the day when we are trading like a normal company and do not have to surgically dissect every piece of news that gets released. I know we have certainly earned that much…

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The shares in the MDMN shell company will need to be sold so everyone can realize their capital losses. Typically you can ask your broker to see your entire position for a penny to recognize the loss. FWIW.

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Provided this is what they actually do, the reason the amount of Cerro we get is reduced by about half is based upon the fact that they have only so many shares of Cerro to give the shareholders and everyone needs to receive and equal amount, so they would divide the number of Cerro shares to be distributed by the number of MDMN shares eligible for the dividend. It’s that simple. Restrictions on share dividends are quite normal, although in my few experiences they lasted for half a year. I’m sure they have their reasons for this time frame, and considering how much work they still have to do, it’s not likely anyone is going to be missing out on any great sell opportunity during that time. I still expect that I’ll be holding these shares for the better part of another decade before the time would come to do anything with them. Maybe they’ll even issue dividends in time and then there really would be little reason to sell the shares. They’d just be a nice income investment akin to receiving interest on money you put in the bank. GL to you as well.

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For clarity, will they “need” to be sold or are you saying that people will probably “want” to sell them in order to get the tax losses? TIA John.

Does anyone have the time & sales (meaning the individual trade) data from today’s (Tuesday the 19th) trading? I just looked at a 1 minute chart and if it’s accurate that move to a nickel today wasn’t just one errant trade. It looks like it actually traded up to that price and then was sold back down afterward. I’d like to see the trade info to see what kind of volume was involved. TIA

Here are the first 50 trades:

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Thank you sir.

Raises some interesting tax questions. Is auryn treating the transaction as an asset sale and recognizing a gain or loss on the sale of claims?

Will our basis in mdmn become our basis in the new cdch shares. I think this is likely.

If the basis stays with the mdmn stock do you really have to sell the stock to take the loss? I believe you can take a loss when a stock becomes worthless.

It makes logical sense to me, at least it seems logical to treat it that way, but what seems logical to me rarely fits the logic of those creating tax laws.

I would be down with that big time. In fact that would fit my investment mode now, buying decent quality dividend paying stocks to supplement income each month. Except for mdmn of course so that would be a good outcome for me. It’s fun to have a very risky stock in your portfolio but this has been something else! I feel bad for those who have come and gone, gotten screwed by Les and couldn’t see it through like some of us were able to, I hope we make it.

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It certainly looks like things are getting better for us. Would be nice if the progress was recognizable on a month to month basis rather than year to year. Maybe we’re close to that now. Things certainly look better than they ever have now that we are actually being given the truth and not endless BS.

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Doesn’t benefit anyone holding shares in an IRA or ROTH account. May be OK for “youngsters” only using trading accounts. Just remember that many shareholders that have been here accumulating positions for years are approaching those retirement years and may have converted shares over to an IRA or ROTH after precipitous drop in share price. Better to just leave an empty shell there in an IRA or ROTH account, IMO.

OTC Profile has been updated:

https://www.otcmarkets.com/stock/CDCH/profile

Only 137 shareholders on record. That’s not many at all.

That’s more than I would have expected.