Question for the stock gurus.
It appears the restriction on cdch shares should be lifted around 12/15/18.
If Mdmn shareholders were to receive their cdch shares for example 1/1/19, would we have to wait additional year to sell and be considered long term capital gains?
Just to remind you that when we received a dividend for each share of Medinah owned, each share of dividend was matched to the date the Medinah share was originally acquired on. For capital gains purposes the date of the dividend shares should be matched to the date of the Medinah shares the dividend is base on. I believe an exchange of shares would work the same way. Without trying to allow for a reverse split math conversion, simply, if you purchased 1000 shares of MDMN on 5/10/16 then if you received 558 dividend shares of CDCH on 1/1/19 your trading account should show you acquired those 558 shares on 5/10/16. Of course, anyone purchasing MDMN shares today (2/6/18) would receive a dividend based on todayâs purchase date and would have to wait until 2/7/19 for a dividend for those shares to become long term, otherwise they would be short term.
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Now that is hilarious- arguing the toss over ST or LT Gains on a stock most of us are down 90%+ on.
Thank you for my morning chuckle.
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No doubtâŚWTH
While not intended as an argument, Iâm happy to offer you a chuckle to start the day. While attempting to answer the question for Dentman I was tempted to offer my own example of " if you purchased 1000 shares of MDMN on 5/10/1997 then if you received 558 dividend shares of CDCH on 1/1/19 your trading account should show you acquired those 558 shares on 5/10/1997", but I used the 5/10/16 date so as not to confuse some who would not understand as easily as others.
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What happens if for example the value of cdch shares is 3 cents on the day we receive them and 6 mos later they are 5 cents and are sold.
Since we technically may still own our Mdmn shares which are substantially down, would the move from 3 cents to 5 cents for cdch be considered a capital gain?
NO, since your cost basis and holding period is based on MDMN stock.
Nothing is a loss or gain until you sell!
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I donât know exactly how it would work, but my conjecture is that CDCH should perform a share consolidation of 1 for 14 (or whatever is deemed appropriate by management) as soon as the restriction on shares is removed. Then the freeze on major news could be lifted, PPS should rise swiftly, and liquidity would be achieved.
I surmise that this would be a pathway for AURYN to place all pro rata CDCH shares back to MDMN. Medinah and AURYN would need to have a Declaration Date for a proposed merge, then order the NOBO list of individual investors which would act like a Record Date. The actual merge date would follow shortly after with all individualsâ shares transferred directly into CDCH or the newly named company ⌠AURYN Corp. US (or what paliser suggested for a thread - âAMCâ Auryn-Medinah-Cerro).
Wouldnât this scenario avoid all hassles of the paperwork involved with a dividend in a penny stock?
Is it feasible?
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yes and yes 
Iâm going to guess that your trip report will be the next news we actually get from Auryn. Perhaps there will be some news releases associated with the conference assuming that Auryn has been finally able to ramp up production by then or otherwise have done something on the mountain worth promoting.
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Maybe Auryn should take some pointers from these guysâŚ
"John Lewins, K92 Chief Executive Officer and Director, states, âWe are extremely pleased to have reached this very significant milestone of commercial production. That we have achieved this mining the Kora North Lode, eight months after drilling the first discovery hole and just four months after commencing grade control drilling and the treatment of the initial bulk sample is a testament to the professionalism, enthusiasm and ability of the entire team at our Kainantu operation.â
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Hulk,
Please donât leave out some important information that K92 acquired a large property that had been previously mined:
THE KAINANTU MINE
K92 Mining Inc is focused on advancing the Kainantu Gold Mine, located in the Eastern Highlands province of Papua New Guinea, towards production. The Kainantu property covers a total area of approx. 410km2 and was previously mined by Highlands Pacific and Barrick Gold from 2006-2009.
After being commissioned in 2006, the processing facilities operated for a cumulative total of approximately 7000 hours (292 days) before being put on care and maintenance by Barrick Gold, who continued this care and maintenance of the mill until the sale of the project to K92.
http://www.k92mining.com/operations/
Their CEO did not face the same obstacles Mr. Cordova has faced over the past several years.
(Full disclosure - Iâve had a position in K92 since 2016 and see it as a promising long term prospect.)
K92 has had 70 PRs since 2016. It is listed on the OTCQB where I believe CDCH (or the new CDCH after consolidation) will be in the future. After the next 70 PRs are released from Mr. Cordova I expect weâll have some exceptional news reported as well.
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Easy⌠I know I left out some important details it was meant to describe how slow these guys are especially what we went through in the past. With Auryn so far It seems itâs groundhog day all over again.
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Sadly that is also funny. I feel for you, and me!
Are we speculating now that any significant information will be withheld until our conversion is concluded?
This is what happens when you give them a mountain for nothing. We have no leverage now thanks to GC and our other past directors who negotiated this deal. Pure garbage!
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While I will not try and list all the advantages over the disadvantages that have developed following the arrival of AURYN, I will offer two of what could be considered the greatest positives. One, JJ is gone and two, Les is gone. Without AURYN, and had the two of them remained, it is likely that MDMN would have gone the way of NPER.
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The only consolation I can offer is that this does appear to be a bottom to me. Everyone that has remained in this stock has felt more than their share of anguish for sure, myself included. Sock drawer mentality is not satisfying for the majority of shareholders, but it is reality. There are 6.65B shares of CDCH restricted stock that need to be distributed to individual shareholders AND be unrestricted before any real value as determined by the market can be assigned to the ADL concessions. We will have whatever information is required in annual/quarterly reports until that occurs. Anything more than that would advantage those already holding a portion of the 350M CDCH free trading shares. AURYN is more interested in building long-term value and liquidity in a mining company, not day trading, IMO. Iâve already expressed what I think the strategy going forward is so far as equitably treating all shareholders to have a secure stake in transitioning shares into CDCH and the new company.
Perhaps Mr. Baldy will report back why the name is listed as âAuryn Mining Corporationâ or some news when he returns from PDAC.
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Don are you sure about that? Whereâs the contract they said they were going to put out from December release? Whereâs the production numbers from the Chile report in November? Like hulk said feels like Groundhog Day all over again. Waiting for the answers
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