I should take legal action against myself for “staying” invested this long.
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I don’t get it. What happened to CDCH that everyone is upset ?
http://www.bloomberg.com/news/articles/2016-02-10/the-mining-industry-makes-oil-giants-look-great
Worst Still Ahead for Global Mining Industry After Losing $1.4 Trillion
[but maybe less so for gold - CHG]
…
“The test is going to be now with this pick-up in the gold price and the absolute confusion around the global economy, and watching everyone suddenly rush back to gold and gold equities,” said Mark Bristow, CEO of Randgold Resources, whose shares have surged 40 percent this year.
Prices are strong and companies are looking to acquire, said Neil Froneman, the CEO of Sibanye Gold, South Africa’s biggest gold producer.
Deals Will Happen
The time for mergers and acquisitions in gold is ripe, according to Sibanye.
“This doesn’t come around very often, maybe every 15, 20 years,” Froneman said.
The biggest producers have been battered by the slump in commodity prices that’s forced producers to dispose of lower-quality mines and smelters. Anglo American, which is selling more than half of its assets, will probably announce sales of its coal assets in the country in the next two weeks, according to the South African Mineral Resources Minister.
Private equity groups are circling. The value of private-equity deals in the mining industry will rise this year from $3.2 billion in 2015 as top producers save money and offload unwanted operations, according to U.K. law firm Berwin Leighton Paisner.
First Mining to Acquire Clifton Star Resources Inc.
No revenue / non production
about 800 Koz of decent grade 2 gpt to 5 gpt gold
They had about $8.5Min cash which was unusual
FF.V paid about $15M for the whole thing, or about $7M net cash for 800Koz of gold ($9 / oz)
Have to get those deals done - the pendulum may finally be starting to change directions
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Thanks, L&G.
Is this something new/different or it conforms with what has been discussed/dissected at length a few weeks ago?
I expect significant news from Auryn this coming week.
Some of the Boyz are currently on travel status at the moment.
March will be a very active travel month as well.
Claro should be very close to running out of shares.
Lots of activity on the mountain currently.
Rumor that there might be some promotion going on overseas currently.
Juan no longer has any involvement with Cerro. The purported 50% ownership thing is no more.
As much as some here will never admit it, it appears that it was Les who was able to wrap things up successfully during his last trip to Chile mostly due to the fact that he is the only one that has been able to maintain a good relationship with Juan. Juan was still in the position to kill the deal up until this last trip. (FYI-I think the deal he got for Cerro is better than what their property holdings deserved.)
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MDMNHolder:
Re. an earlier conversation, not an advertisement for this company but see:
http://met-solvelabs.com/dense-media-separation-dms
There are multiple companies now making Dense Media Recovery technology which, without a mill or associated expenses, can be used to run modest amount of rock (about right for 5000 tpm) and concentrate it 5x to 10x. It would be a beginners tool but at 10 to 25 gpt gold it could be worth the effort for 6 to 12 months.
just ran across this being used in other ‘small deposit’ scenarios where building out infrastructure didn’t make sense and there were no local processing facilities.
Mostly just pointing out there are probably multiple ways one could go about ‘concentration’ before shipping ore, which is what LDMC was going to do and what rumor suggests Auryn will do, at least for a while. Apparently there is even a term for such high grade ore: ‘direct shipping ore’ - which means ‘high grade enough to make it worth while to truck over a distance’ I hadn’t heard that term before.
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This type of statement with no specifics is the kind of thing that gets people all worked up. I respectfully request that if you’re going to post something like this that you follow it up with more details or please don’t post it.
If it pertains at all to MDMN disappearing, then this must be very fresh news because it’s dramatically different than anything I’ve heard in the last week.
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LG I am somewhat familiar with what a reverse merger is. Question for me is if auryn takes over do they have to keep the name medinah (mdmn) or can they change name at time of merger?
Oh Mike it’s so nice to hear of the great efforts Les has made to move things forward.
Of course, this information comes from…? Les, I presume.
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I hope people are paying attention. MDMN has put out a good bit of information over the years but could never capitalize on it because the claims were so fragmented and under the control of someone who didn’t know how to advance the project and was unwilling to accept the terms offered from companies who did.
http://aurynblog.com/pegaso-nero-target-validates-perez-report/
We took flack about the Perez report with people saying you cannot prove anything with satellite imagery. Well, Auryn is doing the necessary work to validate it!
With Claro running out of shares and AURYN continuing to explore and put out real news, I think it’s finally going to get fun around here again!
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This is absolutely a very real possibility for a number of reasons. For those unfamiliar with a reverse merger, here is the definition.
A reverse takeover or reverse merger takeover (reverse IPO) is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public. The transaction typically requires reorganization of capitalization of the acquiring company.
This makes a lot of sense in our scenario. It allows AURYN to own the ADL and maintain control of capital. It cleans up the reputation of MDMN. It finalizes the consolidation of the Altos de Lipangue region. It gives us shareholders longer-term upside for a larger piece of the pie.
I have no idea how accurate the rumor is. I do know several of us shareholders have suggested the idea to management. Given the right terms, I’m sure certain members of management would love the idea!
Oh, one other big factor of why this might be the best approach!!!
My understanding is that NUOCO and CDCH received shares in AMC for their shares / claims. A reverse merger would give those real value and liquidity without having to wait for the IPO market to improve or AMC to list somewhere.
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So you are stating that CDCH USA owns 100% of CDCH Chile which is contrary to what we have been told officially. If true, did JJ just give it back or was he compensated for it in some way to the detriment of us U.S. shareholders.
Also, your last statement is curious, do you have access to Auryns drilling results regarding Cerros claims? If so, please share with the rest of us, if not, how are you able to make such a statement?
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Trade Rich, can you or one of our more knowledgable posters please explain why a dividend payout to shareholders hurts the MM shorts? Thanks,
Aardvark
If you sell a stock short, you are required to pay whatever dividends the subject company pays, unless of course you decide to cover prior to the ex-dividend date.
Thanks mrbubba. I’m embarrassed to say I never knew that. If nothing else, this forum has been quite a financial education. Thanks to all.
Aardvark
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What mrbubba said… and, as it pertains to what many refer to as “naked shorted shares”, or phantom shares, which are shares created out of thin air for the purpose of suppressing a stock price to the point of bankruptcy, here’s that part of the story: When a company issues a dividend the cash is divided among the legitimate shares outstanding. So, if MDMN at 1.35 billion shares outstanding issues a .005 dividend, that is the amount of cash that they pay out. But if the number of shares owned by retail investors is 2 billion for example, then obviously the company hasn’t issued enough cash to cover all of that. In order for the assholes who illegally shorted to keep their game going, they either have to pay out the cash to cover the dividends of all the shares they have short OR they must go into the market and buy back all of their short shares, eliminating their short position, so as to avoid paying the dividend. If we are going to get a “squeeze”, this is probably the best way to make it happen. That or someone acquires MDMN for cash.
This kind of leads into the reverse merger rumors going on and why I don’t see it as a realistic option, at least the scenario where Auryn merges with MDMN in order to become a public company. If someone can explain to me why Auryn, or any legitimate company, would want to merge with a publicly traded OTC stock that supposedly has the largest naked short position in all the OTC’s, why in the world would they want to do that?
My knowledge gets a little iffy here so maybe my logic doesn’t work, but my understanding of why publicly traded companies exist is for the purpose of raising capital. You raise capital by issuing and selling shares of stock to investors for the purpose of having money to run your operations, and success doing such leads to profits which raises the price of the stock, rewarding investors. All that gets blown to crap when malevolent dirtballs use the system to create phony shares of your stock with the intent of putting you out of business so as to collect a pile of cash that is dependent upon the demise of your company. I’m sure hoping that Auryn’s not that dumb. Or maybe I’m the dummy, sometimes I can’t tell.
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Rich, good points.
Could it be possible Auryn:
(1) simply wants to take advantage of not having to go through with all the requlatory cr@pola that comes with going public and also the relatively short time it takes?
(2) has evaluated the situation and, contrary to the views of a few, believes there is no colorable legal exposure for MDMN or its management which could cripple the company’s efforts to list on a higher exchange? [as somebody who has danced this dance, please note that EVERY non-public company has less than a clean rap sheet when it comes to accounting and such other corporate governance issues]
(3) views the potential naked short situation as icing on the cake?
I don’t know the answer to these questions - just putting it out there.
Good stuff guys, thanks. Since it’s Saturday and you seem to be in an instructional mood, perhaps you could expand the lesson a bit more by explaining in basic terms, how the hell the “dirt balls”, scumbags, A holes (take your pick) can create phony shares out of thin air?
Vark