Would you rather get bought out ASAP and take a lower payout and less risk , or would you rather trust the mountain and let it ride to possibly get a larger percentage of the pie from AMC?
0 voters
So âwrap upâ and âgo public this yearâ means executing the option this year? Before going public?
AMC now has control of all the surrounding claims and a full option on the ADL. Basically JJ is out of the picture on any of the claims and AMC can begin working in earnest. JJ is a rather large shareholder at this point. Nothing more, nothing less.
http://www.medinah-minerals.com/?p=3429
Hopefully AMC now starts attacking the mountain aggressively! What will become of MDMN is the question.
This is the important section of the news release and the reason for my poll.
After many meetings and negotiations between all parties involved and multiple trips to Chilean Notariaâs, an amalgamation of the NUOCO, Caren and CDCH interests on the ADL plateau occurred. 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 AURYNâs outright purchase formula for the Companyâs Altos de Lipangue (âADLâ) property claims at a much higher ownership holding that would enhance Medinahâs long-term prospects.
I take this to mean a greater stake in AMC and less or no cash out now to shareholders until they can produce and dividend some out.
remember Madre de Dios was JJâs ânext big thingâ - the gold placer property well south of Santiago which he gave us 30% of for âfreeâ. MDMN is abandoning that gift - to simplify things obviously. NOW: MMC = 0% of MDD
MMC owned 15% of NUOCO which owned the LDM, Mambo, and Columbo claims. Plus MMC owned some remnant of that 30% of gold production from the the one claim of the LDM. NOW: MDMN = 0% of NUOCO.
MMC owned shares of CDCH. There was an option for Auryn to get the two CDCH claims according to 85/15 ownership in the claims. Rumor was the Fortuna option was exercised. But weâll have to see how the âamalgamationâ affected CDCH and MDMNâs ownership of CDCH. A safe guess: NOW: MDMN = 0% of CDCH. Does CDCH then still own 15% of Fortuna? Definitely details to be revealed here.
One can assume that in order to not cheat MDMN in the short term they agreed MDMN should get 15% of Auryn production on NUOCO and CDCH claims and the Caren claim (in addition to the ADL claims) to compensate (in the short term) for their loss of ownership of those companies. That is why MDMN is said to âstillâ have a 15% production interest although the form of that 15% has changed from, e.g. 15% ownership in NUOCO to 0% ownership in NUOCO and a 15% production agreement.
So Auryn ends up with 100% of all the claims as they want of course.
MDMN ends up with some % of Auryn > than 15% - still being negotiated
And there may or may not be some additional âprivate compensationâ for NUOCO etc. Or maybe the ownership of the claims goes to Auryn only with the ADL Option exercise - thus linking everything to MDMN SP as reward for all shareholders and insiders. Have to wait and see.
And to tie in those âpublic rumorsâ: Auryn would go public, most likely hoping to have 100% of all the properties in hand by then, and MDMN would be waiting on 2 things:
a. the improvement in the PM markets (could be a long time)
b. Aurynâs ongoing exploration and production (have to wait and see what this amounts to)
And in combination these things would âenhance Medinahâs long-term prospectsâ
Anyway, all IMO. But I agree that if you were to make a âbest guessâ summary at this point:
âless cash to Medinah, 15% of production for some time, and a potentially long wait for a larger reward via Auryn shares trading on a public exchangeâ
Itâs definitely riskier and potentially much longer than just getting a $100M check. 
Yes ⊠but the definition of âthe optionâ is being altered -> so that very likely means less cash more Auryn shares - and so the 7.4 cent âfloorâ we have been counting on ($100M / 1.5 B shares) will no longer be the same floor.
Roberto, I think the good parts are:
I will wait for more details before declaring this good or bad. There are still many potential permutations. But BEâs comments about ever shifting sands of this investment are right on. We are at $0.017 cents because every contract since Partner A has turned out to not be reality. And though in this case we have a real competent funded option-partner and progress is being made the contract itself is now being materially renegotiated, meaning, we still after all this time can not value our investment in the short or long term.
One would expect to hear from Auryn tomorrow or Tuesday at the latest, IMO.
Every body trusts the mountain, its management we donât trust. We need a watchdog/attack dog.
From what Iâve been told (and I have no way of verifying it) the problem has been JJ, 100%. For the longest time he had full control of MMC and also control of enough of the surrounding ADL claims that nobody could do anything with the mountain.
Itâs taken a lot of patience, shares, and AMC to fix that. Now, FINALLY, it looks like the project can get developed.
I suppose for those of us who were here back in the day, it was either this path or insolvency with JJ getting everything.
:::: at least thatâs one side of the story ::::
People need to understand Auryn owns Medinah shares Im sure they are going to see this on our side since theyâre shareholders as well NO? What happens with the shares they own?
JJ no longer has the veto vote. If our existing BOD decided to tell Auryn to pound sand upon any request to rework the contract they certainly have the power to do so. Especially now, given Auryn has made a move for all of the surrounding properties. As previously stated, itâs nearly impossible to come up with a scenario where shares in Auryn are preferable to $100M. Sooooo, if the cash option is such an obvious route why would our BOD include those comments in todayâs update? What is the BOD receiving in exchange for considering yet another change in a âconcrete agreement.â As long as common shareholders donât roll over, again, and demand transparency to the back room concessions, it will be less likely that we get steamrolled, again.
Mgold is right on one point. All of these actions/updates/developments do point to an expedited resolution in MDMN and CDCH (which I love). I just donât have much interest in receiving shares in a private/soon to be public, impossible to value, illiquid RTO. But thatâs only because Iâm not getting any concessions.
OK, am I the only unicorn riding nut case who sees the phrase âbased upon the POSITIVE RESULTS published by AurynâŠâ ?
But most of you seem to think we are going to somehow get a lot less value.
Just maybe it is not the 100 million that is the main problem, maybe it is the SCALABILITY that has them in a quandary. That is not to say we will get the whole 100 mil, but it sounds to me like they have to figure a way to give us MORE value based on the scale up and good assays. Maybe a mix of cash and higher ownership.
This is my delusion for today, so you donât need to say it.
Maybe I am way off base, but here is a scenario I havenât seen on the board. If this is already out there I apologize. From todayâs update
âAt 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 AURYNâs outright purchase
formula for the Companyâs Altos de Lipangue (âADLâ) property claims at a
much higher ownership holding that would enhance Medinahâs long-term
prospects.â
If you reread this passage it clearly states the MINIMUM we can receive is $100 million and 15% interest. It goes on to state âBASED UPON THE POSITIVE RESULTS PUBLISHED BY AURYN, NEGOTIATIONS ARE ONGOINGâ isnât it realistic to believe we have exceeded this MINIMUM level with what has been discovered and publicly disclosed? Therefore maybe Auryn is on the hook for more than $100 million and would like to offset the additional cash it is now liable for based on the âFORMULA FOR THE COMPANYâS ADL PROPERTY CLAIMSâ. It is my assumption that what they are finding in the mountain has increased the amount of cash they must pay to exercise the option and they would rather give up more ownership instead of cash in excess of $100 million.
Maybe I am off base and please correct me if I am. This just seems plausible given what was written in the release. I know this has all been a nightmare. Maybe our fearless leaders made a good decisionâŠ
FYI I have no sources for this information simply reading an update and drawing conclusions.
Also, is it possible the $100M will be replaced by increased production interest which goes up as the mountain proves up?
I would rather see this as opposed to Auryn shares.
John, I donât think anyone is getting concessions.
Good to hear. Then there would be no reason to rewrite the existing contract. That being said, rumour has it that NUOCO insiders accepted shares in Auryn. Did MDMN only get credit for the 15% equity we are owed or did the FCI (the main source of value) make it into the equation? Did JJ receive shares in Auryn for his Madre property in exchange for giving up his CDCH âphantom 50%â? These are the side deals/concessions that should be disclosed.
I have no idea. Like Iâve said, hereâs to hoping the pattern has been broken and weâre all about to make a ton of money. CDCHâs deal, which will need to be announced next week, might be a good precursor of what to expect.
As long as things are transparent and somewhat fair Iâm a happy camper. One can dream.
It seems the lawyer they hired for legal advise is quite competent. Everyone is jumping the gun without facts.
Director
LatinLawFirm
octubre de 2004 â actualidad (11 años 5 meses)
providing legal and business depelopment advice in Latin America to several international clients since 2004. Successfully concluded some US$ 400 million in business transactions,including purchases of the Pascua-Lama gold project royalties for International Royalty Corporation and the purchase of an interest in the Algorta Norte Iodine Project for Toyota Tsusho Corporation
Legal Advisor for Chile
Xstrata Copper
octubre de 2004 â diciembre de 2005 (1 año 3 meses)
Legal Advisor for Chile
Mount Isa Mines
mayo de 2001 â septiembre de 2004 (3 años 5 meses)
Associate
Geographe Corporate Advisory
junio de 1999 â septiembre de 2002 (3 años 4 meses)
responsible for developing business, succeeded in the sale of the assets of a Chilean mining company for a UK client
Estudio Arturo Alessandri
Of Counsel, Natural Resources & Environment
Estudio Arturo Alessandri
enero de 1999 â diciembre de 2000 (2 años)
responsible for the mining and environmental law practice at this traditional law firm in Santiago, Chile
CODELCO
Advisor to the VP, Exploration and Mining Associations (VEAM)
CODELCO
abril de 1997 â diciembre de 1998 (1 año 9 meses)
responsible for expanding the exposure of CODELCO to the international mining arena
Business Manager, South America
Mount Isa Mines
marzo de 1996 â abril de 1997 (1 año 2 meses)
International Legal Advisor
Placer Dome
diciembre de 1993 â febrero de 1996 (2 años 3 meses)
responsible for coordinating global legal advice to Placer Dome Exploration Inc. In such capacity I was exposed to many jurisdictions from Kazakhstan to Indonesia with an emphasis on Latin America
Corporate Secretary
Placer Dome South America
julio de 1989 â noviembre de 1993 (4 años 5 meses)
Responsible for the legal affairs of Compañia Minera Mantos de Oro (La Coipa) and CompañĂa Minera ZaldĂvar in Chile
http://www.latinlawfirm.com/ his website
Yes hulkster that is a big list of clients.
Like CHG stated Auryn should be coming out with an announcement of news this week. Since Medinah canât disclose much maybe Auryn will
My take is there is a scale and formula above the $100m cash option. If
exploration results exceeds the basis on which the $100m was determined the $100m goes up accordingly. AMC has asked MMC to consider paying the excess in AMC stock rather than cash.
âCompanies to consider AURYNâs outright purchase formulaâ.
[quote=âcornhuskergold, post:5, topic:836â]
Rumor was the Fortuna option was exercised. But weâll have to see how the âamalgamationâ affected CDCH and MDMNâs ownership of CDCH. A safe guess: NOW: MDMN = 0% of CDCH. Does CDCH then still own 15% of Fortuna? Definitely details to be revealed here.
[/quote][quote=âBaldy, post:16, topic:836â]
Did MDMN only get credit for the 15% equity we are owed or did the FCI (the main source of value) make it into the equation? Did JJ receive shares in Auryn for his Madre property in exchange for giving up his CDCH âphantom 50%â? These are the side deals/concessions that should be disclosed.
[/quote]I agree, weâll have to wait to see the official AURYN release and what the Days response may be. See further comments under the CDCH thread.
"AURYNâs outright purchase formula"
reads like entirely different language from
"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"
But I obviously like your interpretation a lot more