L&G: Your intentions are good, I see that. Nobody is trying to submarine our investment with comments on this board. Kevin, and others who have been invested in MDMN/CDCH for 15-20 years know a heck of a lot more about this investment than most who post here. It would be wise to consider their views. They want the same outcome. They also have “history” as a reference, and, MDMN history cannot be overlooked when speculating about MDMN’s future.
“The final Joint Venture Option Agreement grants AURYN Mining Chile, SPA an exclusive 36 month option to purchase 85% of the Altos de Lipangue group of claims for a minimum price of US $100,000,000, in an all cash transaction, upon the final exercise of the Joint Venture Option Purchase Agreement. Medinah Mining Chile will retain a 15% ownership/equity interest in the properties.”
As stated in the contract, the option price will be paid in an all cash transaction. Without any change in that language, it should be clear that Auryn intends to pay MDMN in CASH. Will they have control of the BOD and MDMN voting shares when this happens? Will the cash, once deposited into MDMN’s account, be used to pay our share of the CAPEX? Will there be a tender offer from Auryn? Should they make a tender offer will it be in cash or shares of TSX traded Auryn?
While there are many opinions about how this plays out, but they are only opinions, except for the CASH payment upon exercising the purchase option. I expect that Auryn will be sure to have plenty of control over how that CASH will be used and I am confident at this point that our share price will improve. I am content to see this unfold, hopefully sooner than later.
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This fiduciary responsibility/undivided loyalty can all be thrown out the window if Letts resigns. How many CEO’s have we seen resign and lead a buyout against the company they resigned from. Usually, it is a go private transaction where the former CEO is backed by private equity.
I’m reminded again of the story of the old man and the white horse…
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No gold streaming fund would touch this project, they have barely scratched the surface in terms of exploration, not to mention all the other things. Certainly not the big guys like Franco, nor the mid-level guys like Sandstorm, nor the new guys Oshiki or Couer.
For me personally this is the real sticky wicket because frankly I don’t trust JJ to honor the current contract as it reads. He is greedy and selfish. Two characteristics that don’t point to honor. It’s proven that he has made bad deals in the past including most recently his share transfer. After all I have seen in the last 9 years it wouldn’t surprise me one bit if he found a way to screw this up.
Would be nice to have WMO 767 Bill back and maybe he can talk some sense into JJ finally moving on. Remember he went to Chile to talk to JJ. But maybe on the other hand he’s happy he moved on from this nightmare with a Profit
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May be grasping at straws here, but the 20day EMA has crossed the 50day on GLD from below.
Go Gold!!
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Remember, JJ still controls and signs all the documents for CDCH Chile. Maybe this all changed last week.
IS JJ part of that current contract as it reads. Just asking???
JJ has no official standing regarding the Auryn contract since he resigned from the MDMN BOD in September 2014.
With the references to early production by Auryn, what is the split of the earnings? Will it be to our benefit or are they just getting to offset some of their expenses?
If they are so impressed with the mountain why not exercise the option sooner than later? Why buy the cow when they are getting the milk for free?
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Nice 500k block went after the market closed @ .0167
The longer Auryn waits the more money its going to cost them
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If JJ wants to see some cash in hand … Lots of possibilities … from the article on AURYN’s Media page:
Led by principal geologist Luciano Bocanegra (ex-Hochschild Minerals), the firm is assessing a series of opportunities across the property, including high-grade epithermal gold veins, signs of a strata- bound copper deposit and, further down the hill, tourmaline breccia.
Bocanegra is leading the assessment of the Fortuna/Merlin sites at the center of the property, which includes the Fortuna de Lipangue mine that produced gold-copper concentrates during 1950s-1970s from ore grading up to @ 20g/t Au. Through mapping, trenching and systematic sampling, Auryn has extended around 400m of known veins to over 5km. The focus is now on checking the continuity of these veins and the existence of blind veins through geophysics. Auryn recently acquired an adjacent property linked to a mining permit which could allow them to begin small-scale operation if sufficient ore is identified.
I like hearing your ideas. One thing however, that not only you mention, but others have too, is that Auryn will not be paying their Purchase Option Agreement in cash. And it seems everyone who is saying this is talking as if it will be Auryn’s choice to just decide what they want and when they want, in regards to exercising the purchase option. Now, I know they have a lot of say and clout. But they are tied to an agreement, in which if they don’t honor it, and nothing else has been agreed to, will allow MDMN to walk away and peddle the ADL to others. So unless Auryn offers something of significance to entice MDMN to change the existing agreement. Then MDMN can hold Auryn to the contract of paying the $100 million minimum amount in cash, or Auryn may lose the ADL, which I don’t think Auryn will take any chances what so ever of losing that property. The ADL is still the key and is the bargaining chip MDMN still has. IMHO
So no matter what happens between now and the summer of 2017, unless we hear different in official communications, it is my opinion that MDMN is going to get a huge lump sum of cash when the purchase option is exercised, or something of equal or greater value to entice them to change the contract. JMHO
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Agreed. The question is who determines what the value is and accepts that. I’d hope if something alternative is proposed it would be put to the shareholders for approval.
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