AURYN Mining Chile SpA (AMC) Continues Land Consolidation Adds Three New Areas to Portfolio
(February 01 th at 08:40:00 am)
Santiago, Chile, February 1, 2016 – AURYN Mining Chile SpA (“AURYN” or “the Company” or “AMC”) today announced the following three acquisitions:
85% of the outstanding shares of NUOCO (LDM), and in doing so effectively exercised the corresponding mining option agreement.The Caren mine, through the acquisition of Minera Mantos Azules
Chile, which in turn holds exploitation and environmental permitting to
start early production of up to 5,000 t/month on the identified high
grade veins that yield grades as high as 124 g/t
(Update on bonanza gold grades in Caren mine, have returned over 100 g/t Au at Fortuna - Merlin system in the Altos de Lipangue project, Chile. - AURYN Mining Chile)100% of the Fortuna and Lonco Millarepu mining properties, that constitutes the Fortuna de Lampa mine.
With these acquisitions, AURYN Mining Chile SpA has only one JV
mining option agreement pending to be exercise with Medinah Mining Chile
(MMC).
“Adding over 3,000 hectares of ownership to the AURYN Mining Chile
SpA portfolio is an exciting step forward for AMC,” said AMC’s Executive
Chairman, Maurizio Cordova. “This now consolidates the entire mining
district, called Altos de Lipangue. With this consolidation, AMC expects
to start production this year on the exposed high grade veins, namely
Caren-Merlin-Fortuna. A team of mining engineers is travelling to
Santiago in February to start the preparation and design work to achieve
AMC’s production goal. We expect it to be cash flow positive that will
supplement AMC’s exploration efforts and ultimate exercise of the JV
Mining Option Agreement, with MMC,” added AMC’s Executive Chairman.
Submitted on Behalf of the Board of Directors
John, can you educate me on how Auryn can announce their acquisition of the Cerro properties without providing any details about the terms?
Perhaps it is me being paranoid, but are they deliberately holding back the details?
Impossible! I would think it will be a combination of cash and much higher percent of Auryn so Medinah will stay in business issuing dividends from production till they are bought out by Auryn or somebody else.
Why won’t the Day’s tell us what agreement CDCH has with AURYN to give up 85% ???
AURYN Mining Chile SpA (AMC) Continues Land Consolidation Adds Three New Areas to Portfolio
Santiago, Chile, February 1, 2016 – AURYN Mining Chile SpA (“AURYN” or “the Company” or “AMC”) today announced the following three acquisitions:
85% of the outstanding shares of NUOCO (LDM), and in doing so effectively exercised the corresponding mining option agreement.The Caren mine, through the acquisition of Minera Mantos Azules
Chile, which in turn holds exploitation and environmental permitting to
start early production of up to 5,000 t/month on the identified high
grade veins that yield grades as high as 124 g/t
(Update on bonanza gold grades in Caren mine, have returned over 100 g/t Au at Fortuna - Merlin system in the Altos de Lipangue project, Chile. - AURYN Mining Chile)100% of the Fortuna and Lonco Millarepu mining properties**, that constitutes the Fortuna de Lampa mine.**
With these acquisitions, AURYN Mining Chile SpA has only one JV
mining option agreement pending to be exercise with Medinah Mining Chile
(MMC).
“Adding over 3,000 hectares of ownership to the AURYN Mining Chile
SpA portfolio is an exciting step forward for AMC,” said AMC’s Executive
Chairman, Maurizio Cordova. “This now consolidates the entire mining
district, called Altos de Lipangue. With this consolidation, AMC expects
to start production this year on the exposed high grade veins, namely
Caren-Merlin-Fortuna. A team of mining engineers is travelling to
Santiago in February to start the preparation and design work to achieve
AMC’s production goal. We expect it to be cash flow positive that will
supplement AMC’s exploration efforts and ultimate exercise of the JV
Mining Option Agreement, with MMC,” added AMC’s Executive Chairman.
Submitted on Behalf of the Board of Directors
“Additionally, during this trip, the Company met with and retained the services of a highly respected Chilean Mining Law Attorney, Jose Manuel Borquez, to provide legal services for Company matters.”
I don’t know about others, but when I read this last sentence from the update, my impression isn’t that the hiring of this attorney necessarily has anything to do with our dealings with Auryn. Over a decade of fuzzy and misleading updates causes me to pay particular attention to the wording of things, and I find myself curious about what “Company matters” actually pertains to. If there’s one thing I’ve learned from MDMN updates over the years, it’s don’t assume anything.
Auryn bought 100% of the Cerro properties. So the Cerro option was effectively cancelled and an outright sale of the properties occurred. How was Cerro compensated? Cash? AMC shares?
They are obligated to report a material event so I’d expect to hear something ASAP. Not sure how much time the Days were even given to respond or generate a report. I’m really hoping, for both my MDMN and CDCH positions, that the deal is considered fair, otherwise shareholders are prepared to challenge what is already being presented as a “done deal”. Without the Fortuna claim, Auryn will not be able to execute their near term production plans. If this reality wasn’t properly leveraged to CDCH’s advantage in agreeing to a deal, our interests weren’t properly represented. This would obviously not be an acceptable outcome.
Thanks John. I am also just counting on Auryn being too smart to do something stupid and jeopardize/delay their early production plans for the ADL.
Where is Brecciaboy ?
Some time ago, I stated, relative to the existing contract “EVERYTHING can renegotiated”. MDMN & CDCH shareholders will not realize any share price increase (of any significance) until CDCH & MDMN no longer exist in their current form. CDCH appears to have crossed this threshold, and, looking forward to the same for MDMN.
Dentman, and others: Continue to follow Wizard, Baldy, Cornhuskergold, and the other sane posters on this board. Those who are new (less than 2 years) in your ownership of MDMN or CDCH shares, these individuals know the history of the MDMN BOD, which must be considered in any forward speculation.
$200M initially is quite unlikely, IMO, if they go public anytime soon. They would initially have no production and limited formal reserves. I have a long list of gold companies I can get a quick summary Yahoo quote list on. When I sort by market cap, the first company that makes a $200M market cap level is producing just under 100,000 Oz of gold a year!
By way of comparison, it would take about 25 g/t @ 5000 tpm to get to around 50,000 oz / yr. Auryn should be making quite a bit of money at that point due to the high grades, so it is possible they could even exceed the market cap above. However, they certainly would not have that rate or grade on day 1 should they go public in mid-2016.
So in my mind, the initial SP would be much lower, but as they improve production and report profitability and report formal reserves on the veins it could significantly improve and get to that level, possibly by mid-2017. But until we hear plans and timelines it is impossible to predict.
I think the best overall summary is that the 3 year / 5 year outlook is quite bright and should become much less risky as Auryn takes this thing by the horns and moves forward with production assuming this negotiation with Auryn ends up with Medinah getting a decent deal. But if you are looking for a short term exit at even the lower exit prices that have been discussed around here, things look rather uncertain.
I would think it will be a combination of cash and much higher percent of Auryn so Medinah will stay in business issuing dividends from production till they are bought out by Auryn or somebody else.