MDMN - 2016-02-01 Weekly Discussion

Weekly Discussion
5

  1. remember Madre de Dios was JJ’s ‘next big thing’ - the gold placer property well south of Santiago which he gave us 30% of for “free”. MDMN is abandoning that gift - to simplify things obviously. NOW: MMC = 0% of MDD

  2. 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.

  3. 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 we’ll have to see how the “amalgamation” affected CDCH and MDMN’s 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 “still” 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.

  1. In regard to MDMNHolder’s #4: Recall the ADL Option is for Auryn to get 100% of the claims in return for 15% of Auryn plus $100M. So MDMN would end up with 0% of the claims and 15% of Auryn post - option. Most likely Auryn would like change the terms to less than $100M. And so as BE stated, the negotiations are most likely for less cash and a larger than 15% of Auryn while Auryn would continue to get 100% of the claims.

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 “private compensation” 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 “public rumors”: 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. Auryn’s ongoing exploration and production (have to wait and see what this amounts to)

And in combination these things would “enhance Medinah’s long-term prospects”

Anyway, all IMO. But I agree that if you were to make a “best guess” summary at this point:
“less 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 exchange”

It’s definitely riskier and potentially much longer than just getting a $100M check. :frowning:

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