reminder as well, the .558 ratio is not set in stone. it is a projection. I expect the conversion rate will ultimately be exactly or âclose-toâ .558 but it could vary based on how MDMN fully unwinds.
I for one canât wait to remove âMedinah Mineralsâ from my lexicon.
I donât know that I have any more clear a picture than you do, but based upon the last MDMN update, and this paragraph in particular:
âAURYN has informed Medinah and the rest of its shareholders that AURYN
will be exchanging its shareholdersâ AURYN stock for shares in Cerro,
pro rata, as soon as practical. When this transaction is complete,
Medinah will own 1,649,130,000 shares of Cerro with a one-year holding
period. This is in addition to the shares of CDCH that Medinah already
owns.â
I believe the answer to your first question is, unfortunately, it depends. They may have already transferred the shares to MDMN, but maybe not. Maybe Kevin could shed light on this. Maybe it hasnât yet been âpracticalâ for Auryn to transfer the Cerro shares to Medinah yet. If there is a way to know, I donât know what it is short of asking Kevin or the company and who knows if they would say?
As for your assumption about the when the 1 yr restriction begins, I believe it is when MDMN receives the shares from Auryn, based upon this statement in the same MDMN update:
âWhen this transaction is complete, Medinah will own 1,649,130,000 shares of Cerro with a one-year holding period.â
I donât know if a restriction starts again after we receive the shares or if we just pick up where MDMN leaves off. I doubt that we would receive the shares after the restriction expires because MDMN intends to close business operations down. It doesnât make sense to keep running for a year just to hold shares they intend to give as a dividend, so I suspect that they will issue the shares to us as soon as they possibly can after receiving them from Auryn.
I believe MDMN will exist simply in order to trade the restricted shares of CDCH via MDMN, while the restriction is in place.I doubt they will transfer restricted shares to MDMN shareholders and I sure hope that is not their intent, since this would be another nightmare just like the MDMN 10% stock dividend was. It would make more sense to simply do a conversion/exchange of MDMN stock to CDCH stock once the restriction is lifted. JMO.
My understanding is as follows (please donât take it as absolute fact.)
The new / restricted CDCH shares were created and issued to AURYN when the transaction took place. The one-year hold period started at that point.
I donât expect AURYN to distribute those shares to their shareholders, (i.e. AURYN insiders and Medinah Minerals) until the restriction is lifted. Thereâs no sense in multiple people and / or organizations jumping through hoops to get the restriction lifted.
My expectation is that once Medinah Minerals has the unrestricted shares of CDCH, it will distribute them pro-rata to its shareholders after covering whatever debts it talked about in the announcement. I donât expect that ratio they announced to change.
I think the âpractical languageâ from the update was related to looking for a way to distribute the shares so that people could get unrestricted shares. I donât think thatâs possible though. We have no choice but to wait.
Iâm okay with waiting the full year. I donât want to go through what we had to before with the MDMN restricted share dividend.
Thanks so very much. If it does go this way I believe this is the best for all Medinah shareowners. Some may not yet understand why but as time moves forward then they will begin to better realize the advantages of this scenario.
Thanks very much for the response Kevin! I understand this is your perspective at this time and things might be different and/or are subject to change. Hope life is treating you well.
Now that Wizard has given us some clarification on the restricted stock, would anyone care to venture when we might hear any news on what is happening on the mountain? Even a new photo would be niceâŚ
Thanks Wiz, makes the most sense. The way I see it, the restriction should be lifted no later than Dec 15 as gleaned from AURYNâs December notification.
The remaining AURYN shareholders now own 95% of the issued and outstanding shares of Cerro. These shares have a one-year restriction on them.
The mechanics of distributing shares to individual shareholderâs accounts remains to be seen. I would like to see the timing for the date of record that will need to be announced. Ideally that will coincide with the date the restriction is lifted. Of additional interest will be the CDCH financials. These may or may not be of much significance (IMO) in the annual report. The June 30 Q2 (edited) report should show if significant production/exploitation of the Larissa adit is taking place.
I believe the CDCH financials will be very important going forward in 2018 as well as year end 2017, since we should have a real balance sheet once all the Auryn assets have been included as well as an adjusted operating cash flow statement for the Qtr on a proforma basis. The Income statement will also be interesting, even thou it will show a loss most likely, but it should give a fairly good indication of ongoing operating expenses. Since Auryn announced the sale of assets to CDCH on December 15th it is unclear if the transaction was completed before year end, but my guess is that it was so the year end numbers should be adjusted for the completed transaction. If the sale was not recorded before year end then of course we will most likely have to wait May 15th for Q1 2018 financials.
Dec 15, 2017
Cerro now has 7 billion shares issued and outstanding, no debt, and owns 100% of the Altos de Lipangue mining district claims that AURYN Mining Chile SpA took several years to consolidate. We will post the complete contract with a detailed list of the properties as soon as practical. https://cerrodorado.com/cerro-dorado-acquires-auryn-mining-claims/
Does anyone anticipate seeing the complete purchase contract to Cerro for all of AURYNâs mining concessions posted prior to the shares becoming unrestricted? It is interesting that at the time of purchase in mid December there was no debt. How is this possible unless there has been production? Only the ownership of claims were exchanged in the stock for property transactions. It appears to me that it is only Cerro that is free from debt and is still a separate company entity from Medinah and AURYN.
Isnât AURYN still a private company until the 3 companies become a single entity? Is there a separate contract âoff the booksâ that covers the mining expenses and operations of AURYN as a private company? At what point will all details be revealed? At some point all three companies (Cerro, MDMN and AURYN) will be consolidated under a new name and new share structure. Only then will complete financials be possible. IMO
I believe that AURYN remains a private company that owns many shares of a public stock, CDCH. AURYN has a number of partners, including Medinah, that owns rights to a percentage of the CDCH shares that AURYN received for the 95% ownership of the ADL that AURYN transferred to CDCH. (Remembering that CDCH already owned 5% of the ADL plus the 95% from AURYN equals CDCHâs 100% ownership of the ADL)
I do not believe Auryn will go away. They own a certain percentage of CDCH when all said and done and my guess is that they will be used for other investment purposes. I believe first CDCH will go away via a name change first, followed by a reverse stock split and movement to a higher exchange. Then once the restricted CDCH shares held by Auryn become unrestricted the appropriate amount of shares will be distributed to MDMN. Then after that MDMN will do an MDMN to CDCH share exchange. and then MDMN goes away. What is left is Auryn as a private investor in the new named company and everyone else as independent investors in the new named company. JMO