MDMN - 2016-01-25 Weekly Discussion

[Photoguy]

"…, an amalgamation of the NUOCO, Caren and CDCH interests on the ADL plateau occurred."
Are they saying it’s all part of the ADL deal now, or what?

[TheRod]

“Due to the length of time this POSTING has taken, I think that those of
us that follow the THREAD on a day by day basis tend to forget
how incredibly complex THESE PROMULGATIONS must be to a new prospective
investor recently hearing about it from his brother-in-law. It would
take an incredible amount of time for the average mining investor to get
THROUGH THESE POSTS to a comfort level at which she or he would pull the trigger on an investment.”

Hope you don’t mind Jim, I couldn’t resist !

Rod

[Photoguy]

“MDMN still possesses a 15% interest in all AURYN production from property claims.”

15% of production? Early production? When did that happen?

[BigBaboon]

@mrbubba

It is important to note that the position of Medinah Minerals, Inc. (MDMN) is currently unchanged. MDMN still possesses a 15% interest in all AURYN production from property claims. At this point, Medinah Minerals Inc. continues in its Option Agreement with AURYN that calls for the payment of a minimum of $100 million US funds while maintaining a non-dilutable 15% interest in AURYN holdings. Based upon the positive results published by AURYN, negotiations are ongoing between the Companies to consider AURYN’s outright purchase formula for the Company’s Altos de Lipangue (“ADL”) property claims at a much higher ownership holding that would enhance Medinah’s long-term prospects.

I kind of like the ring of the above quote, no matter how you interpret it. Sounds like our 15% ownership is solid and our $100 million dollar minimum is going up in price. The initial question I have. And at an initial read, it still sounds to me like we will be in the game for a while. No TO coming that I see. We will keep our, “non-dilutable 15% interest in AURYN holdings.”
With all that said. It may be time for the market to start reading up on our little company and we could start seeing more buying interest as all this sinks in. Sure hope so anyway.

[TradeRich]

@mdmnholder

Why do they write these things that can be interpeted in so many different ways.

Because they can’t and/or won’t tell us everything that is going on. If we truly “are what we eat” then MDMN shareholders must LOVE mushrooms! Sorry but today I’m feeling particularly tired of the bullshit that comes with being invested in the activities of these men.

[mdmnholder]

my weak attempt:

1. Nuoco, Caren and Cerrado properties combined under some entity. Who, what, where and how much?
2. MDMN interest in LDM dumped for no compensation.
3. ADL Option Agreement is still $100 million, but the 15% in Auryn is non-dilutable.
4. Based on good results, MDMN may keep a higher percent of the ADL and receive less cash.

[MikeGold]

The details will be released by Auryn since in general the agreements are between them and the other entity or Medinah is otherwise prohibited from releasing details first. Wait for it…

[C3PO]

I agree TR. I am to the point that when our BOD gives us vague updates, it is because they don’t want us to know how we are getting screwed over in the end.

[Baldy]

@Photoguy

"…, an amalgamation of the NUOCO, Caren and CDCH interests on the ADL plateau occurred."Are they saying it’s all part of the ADL deal now, or what?

No surprises here. This is what we’ve been discussed/posted over the past 48 hours. Question is: how do the numbers break down? Specifically. This BOD should recognize that nobody, with the exception of Decosta and BB, trust them to conduct business, privately, that has considerable impact on the public shareholders. I really hope they are prepared to open their proverbial kimono this time. I don’t think it’s much of an option this go around.

[TradeRich]

@C3PO

I agree TR. I am to the point that when our BOD gives us vague updates, it is because they don’t want us to know how we are getting screwed over in the end.

It’s not that I think we’re getting screwed, it’s that when they are vague as they typically are, it always LEADS investors to BELIEVE that they are getting screwed. Unfortunately often times with investments, particularly pink sheet investments, it does in fact mean that shareholders are getting screwed, but I’m not going to make that assumption.

[cabezon]

Madre de Dios is not the LDM (Los dos Marias), which has been in Nuoco for a while.

This makes me wonder how this amalgamation came about when that offer contractually said Nuoco would go thru Medinah.

[mdmnholder]

Thanks, i get all these properties confused, guess I need to go back to one CHG’s org charts.

[Baldy]

@mrbubba

Based upon the positive results published by AURYN, negotiations are ongoing between the Companies to consider AURYN’s outright purchase formula for the Company’s Altos de Lipangue (“ADL”) property claims at a much higher ownership holding that would enhance Medinah’s long-term prospects.

This is what I was referencing the other day. They are clearly considering changing the terms from a $100M purchase to some formula that gives us more than 15% of Auryn (“higher ownership holding”) in lieu of that payment. And our BOD may just be dumb enough to agree to that change and/or is being compensated with other concessions in order to help that decision along. Impossible to say at this point but this update clearly points towards what we were speculating upon previously

[GCCapitol]

Lol… When you get it figured out, may I borrow your cheat sheet?

[TradeRich]

@Baldy

I really hope they are prepared to open their proverbial kimono this time.

I know you stated “proverbial”, but man, can’t you find a less distasteful analogy than that???

[mdmnholder]

Not only is it important to understand what is happening structurally, monetarily, but it would also be nice for the BOD to provide some color as why these transactions are taking place.

[BigBaboon]

Or it could mean more cash? And more ownership both. We don’t know at this point?

[cornhuskergold]

@TradeRich

@Baldy

I really hope they are prepared to open their proverbial kimono this time.

I know you stated “proverbial”, but man, can’t you find a less distasteful analogy than that???

LOL - I had the same thought when I read that

[Baldy]

@BigBaboon

Or it could mean more cash? And more ownership both. We don’t know at this point?

Sound logic per usual. I’m sure Auryn is tripping over themselves to give us more money and increase our ownership in Auryn. That’s exactly how things go down in the real world.

Nope, they are clearly putting out a “trial balloon” for reworking the contact for more Auryn in exchange for no cash. Could be good news for those that want to spend the next ten years in this investment. Somehow I doubt that our BOD has any idea how much equity we would be due in Auryn in exchange for $100M.

There’s always a silver lining. At least this means we might have a window of reprieve from the discussion of cash dividends and disconnects.

I was told that the NUOCO guys accepted shares in Auryn over cash as well. VERY ballsy.

[BigBaboon]

Higher ownership does not necessarily relate to less cash, and none of us will know until the bottom line is signed and the facts are made public.

The very fact that NUOCO guys accepted shares, to help facilitate early production opportunities, could actually mean more cash Auryn did not spend there and can put elsewhere.