volume 15,161,366
Buys 2,294,587
sells 12,866,779
The numbers speak volumes.IMO This has been planned well.
1 Like
1.069 in Oklahoma City , gone down .07 in less than a week
I’m not trying to be belligerent, but the contract is public and published. I see no mention of a clawback. I’m fairly certain the term “minimum” is standard for “no less than” meaning “this is what is required to perform” not, “there is some unknown, undocumented possibility for more than”.
Also, MDMN is fine if gold goes ballistic. We’re still getting 15% and receive the proportional increase of gold. The value of gold is irrelevant. AURYN’S risk was the required exploration in the option agreement. If gold drops like a rock and it’s uneconomical to mine and AURYN doens’t exercise, MDMN retains the property and AURYN is out when it becomes economical.
5 Likes
One last word from me about the option agreement, then I’m done! Promise.
The contract is available for anyone to read. As written I do not expect to receive any more than $100 million in cash.
Some will argue that if we get a larger percentage of AMC and some lesser amount of cash that the value (or potential value) of more equity in AMC is larger than $100 million cash and 15%. Fine, but that’s a renegotiated deal with an arbitrary valuation on a non-fungible asset. I may agree that it’s a better deal too. But it’s not “a minimum of $100 million in cash” at that point. Remember, that’s what we had with $180 million of Amarant stock. 
For me, instead of always thinking MDMN has something better around door number two that they’re not telling me about and getting disappointed when it’s not as good as advertised or dreamed up. I’ll keep my expectations with what is written, and be gladly shocked if there is something that surprises me in a good way.
Occam’s Razor
3 Likes
I’m ok with 100 million and 15% in AMC
2 Likes
Past few days have been interesting. Not to complain but I wish this little piggy was rising as fast as the last time someone was bing 10s of millions of shares.
Hi Wiz,
You’re speaking in terms of the POST-OPTION EXERCISING ERA when you say we’ll have exposure to higher gold prices via our 15% holding in AMC. These “clawback” provisions are designed for the PRE-OPTION EXERCISING ERA (when Medinah holds 100% of the action) if the metal prices should crash or go ballistic. It’s a mechanism to protect the “offeror” should the POG go nuts in the pre-option exercising era. It’s only equitable to have this. The optionee already has an INSURANCE policy in the ability to walk if gold goes to zero. The offeror (Medinah) doesn’t want to attract optionees that are going to do the minimum amount of work at the last second while all along hoping and praying that the POG goes nuts and he can “flip” the option to a major.
AMC and a lot of other mining entities use options as “legal placeholders”. In both the Nuoco and Cerro deals they never “exercised” the option. They came to a mutually agreeable deal prior to any “earn in” by AMC. The fate of Medinah’s option might be along the same pathway. A lot of unknowns become knowns during the option period. I doubt that the early production opportunities were ever addressed in the original deal. They need to be thrown onto the table NOW that we know they exist. Early production opportunities consisting of high grade near surface gold is a GAME CHANGER from an economics point of view. My opinion is that Medinah will be rewarded for having these opportunities versus if we didn’t have them.
For all we know, theoretically Medinah could contract out to a mining group and exploit some early production opportunities in the time period before AMC exercises the option. I don’t foresee this but if these early production opportunities were not specifically addressed in the original deal (which has probably been amended many times like it was at those Toronto meetings) then who knows what Medinah might do. I think we need to wait on the engineer’s report and recommendations before the i’s are dotted and the t’s crossed.
We have a partial view of the original agreement which is missing the various schedules which somebody wants to remain confidential. This is no doubt AMC’s request so that some other suitor doesn’t try to pull a fast one and circumvent the option somehow and outbid AMC’s bid. You never want to tell any potential competitor exactly what he needs to bid to win a deal. If AMC ends up owning a gazillion of our shares and a major comes along and says we’re prepared to pay “X” for Medinah’s percentage of the action plus the cash plus the early production opportunities I would think that AMC would love to broker a deal where the major pays a ton of money for Medinah’s shares (including AMC’s portion) and AMC partially funds their portion of the CAPEX with the proceeds. This option carries a right of assignment granted to AMC IF AND ONLY IF Medinah approves of the party to whom it might be assigned.
3 Likes
Okay. I’ll grant you that it’s a possibility. But where is any of that in the contract? There’s absolutely no reference to it and anyone who is saying that’s what “a minimum of $100 million” means has written the absolutely worst contract possible and may as well just have said, “see you in court” because the contract will be litigated.
AMC and a lot of other mining entities use options as “legal placeholders”. In both the Nuoco and Cerro deals they never “exercised” the option. They came to a mutually agreeable deal prior to any “earn in” by AMC. The fate of Medinah’s option might be along the same pathway. A lot of unknowns become knowns during the option period. I doubt that the early production opportunities were ever addressed in the original deal. They need to be thrown onto the table NOW that we know they exist.
If this is what happens then you’re talking apples and oranges. It’s not the same contract, but something completely renegotiated. I suggest that’s bogus and not likely to happen because if AMC is going to have to pay more than $100 million to have early production they would just pay $100 million and exercise the option. That’s all that’s required.
Now if they want to go into early production and cannot pay the $100 million today, they could renegotiate the agreement. But now it’s a different agreement, not the current one. Medinah could say, “No, we’re refusing to allow you to go into production on our property unless you have exercised the option. What’s that? You don’t want to exercise it or don’t have $100 million today. No early production for you. But If you want to go into early production, we want $150 million and 20% of AMC.”
If that’s what you and everyone else are saying then they are negotiating a different option agreement only because AMC is not ready, doesn’t want to, or cannot immediately fulfill it’s part in the option agreement.
====
BTW, if the renegotiation is what’s occurring, I’d suggest something along the lines of a payment stream over time that amounts to greater than $100 million and is over and above our percentage in AMC until reached.
But now we’re back to dreaming and not following Occam’s Razor. I’ll stick to the contract as is until I hear AURYN indicate something different.
3 Likes
Also, wrt early production opportunities, the only ones that concern MDMN are on the Merlin and ADL claims. AMC already owns everything else and is free to go into production on the Caren, Fortuna, and LDM claims.
I think I’ll just stand by my first assessment. 
“Now I’m going back in the tank.”
2 Likes
Doc you stated, “As far as the discussion on the “minimum $100 million cash portion of the purchase price”, both parties to a mining deal need PROTECTION/INSURANCE on metals prices falling out of bed and going to zero and metals prices going ballistic to the upside.”
I just want to say, that I agree with that reasoning. I don’t know if it’s a claw back clause or that the definition of Minimum means you could be paying more? But I don’t see anyone saying to a party, "Go ahead and explore for three years, and find all that you want, and no matter how much you find, even Billions and Billions of dollars worth, you never have to pay more then X."
That does not sound logical to me in these types of business dealings. If that were the case. Then Auryn would have zero incentive IMHO to exercise or move on anything till they’ve found all that they can find in 3 years and then figure out how to best move forward. Anyway, I like what you said and the above is why I believe MDMN is going to receive more then $100 million dollars cash upon exercising the purchase option.
1 Like
And it looks like another good volume day. Another 5% to the share price too. Hope it continues.
Tomorrow is gonna be a big day…watch. The wind is at our backs.
3 Likes
Without a new dynamic coming into play today, trading is likely to look a lot like the past three days imo.
I’ll be interested to see if our big buyer(s) show any more sense of urgency to get filled today, i.e. being more aggressive on the ask. This could be a tell regarding the timing of some news or event.
4 Likes
FYI, Monday is President’s Day, so no trading on the US stock exchanges.
1 Like
The last time I saw our big buyer(s) on the bid the large order was for 23,478,914 shares. I’d love to see them come in today with another 60 million order, but it’ll be interesting to see if they show another large number again today and how it differs from yesterday.
1 Like
auryn site is down?
now its back up.
The Company has one remaining option agreement with Medinah Mining Chile (MMC). The remaining option agreement can be exercised at any time at the sole discretion of AURYN.
right at the bell CDEL is up with the 23 mil bid
1 Like
