Ditto to that!!!
Maybe yes, maybe no, but It should be fairly close, and it makes a significant difference in valuing the 15% since it will be determined by the market! JMO
The contract is clear. Why do people invent things that are not there? Just read the contract.
Forget these pie-in-the-sky dreams that make no sense in the real world. NOBODY is giving anyone 15% of the entire AMC owned ADL with a perpetual non-dilutable interest.
There will be cash calls. We will have to come up with the cash or be diluted. If itâs common stock of a public company weâll suffer the same dilution any other common shareholder would suffer. AMC is not going to be giving MDMN some special non-dilutable interest. There is no free ride here.
Read section 5 of the contract on page 14.
We turn over 100% of the rights to all the properties. AMC pays us $100 million dollars and 15% of the shares of AMC SPA.
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Like I said it will all depends on how they finance their cash needs. Debt financing will not dilute our equity interest going forward.
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Yes. We will suffer the same dilution any other shareholders of AMC suffer. So if itâs debt financing then nobody suffers dilution.
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NOT A PROMOTION OR ADVICE TO INVEST:
I saw this interview by David Morgan of James M. McDonald, CEO of Kootenay Silver yesterday:
and now this article on Seeking Alpha which mentions Kootenay:
http://seekingalpha.com/article/3911016-mining-capital-expenditure-continues-fall-cycle-expected-another-2-years
The reason I bring it up is that it makes me think of Masglas (AMCâs parent company). Essentially their self-description value-add is as a âconsolidatorâ for the majors. They find, consolidate, explore properties, get to formal resources and then sell in part or whole. They just did a deal with subsidiary of Pan American Silver (a silver major) with a âpurchase Optionâ for Kootenayâs flagship property: 75% ownership for $8M in cash and $8M in exploration expenses. Their idea is to do the work now and then turn about and sell when the majors must buy as the market turns and they need to replenish reserves.
It sounds quite familiar.
In this mental model AMC is one subsidiary of the parent and the ADL is the flagship property being consolidated along with other properties Masglas has already publicly mentioned.
The cash from early production enables them to 1. pay the ADL option, 2. fund exploration and increase value of the property, 3. potentially fund further Masglas acquisition and exploration and thus expand their consolidator role and increase value in their company.
In this model, Masglas is the company that would go public like Kootenay. And Maurizio Cordova is James M. McDonald.
Medinah US would own 100% of MMC which would own 15% of AMC with the other 85% owned by Masglas (and friends) (15 / 85 ratio subject to change but the idea is what is important here). Medinah would have no direct relationship with Masglas other than as shareholders in the same company (AMC).
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Wiz do agree option will be excersised (hopefully les next meeting April) before Auryn goes public?
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Will Medinah be given seats on the BOD of Auryn equal to the 15% ownership?
We definitely have a good start on this entire process. But there is still a lot of work ahead of us (Auryn). I would love to see Auryn exercise the purchase option agreement by this April. But Iâm not so sure that Auryn wouldnât want to wait till the next round of drilling and assay results are back before making that big move. I think the more Auryn learns about the Mountain, the better for us, and the better educated Auryn is to make their decisions going forward, which is certainly a benefit for Auryn.
And remember Auryn still owns nothing, zero, of the ADL until they exercise their purchase option. So let them keep spending money to prove up, explore, the Mountain. That is a completely free service MDMN is receiving at the present.
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IMO, I think CDEL might be causing the price of MDMN shares to drop so consistently over the last few months or possibly longer. The company OxySure Therapeutics, OXYS,has sent a letter to their senator in Texas and the SEC, in which the company details their allegations that CDEL has been consistent in shorting OxySure stock and causing the sp to drop from $1.20 to $.17. âCommencing on approximately November 20,2014 we believe that certain broker dealers who also act as market makers. . . started to systematically destroy the share price of OXYS . . . .At that point we believe that through a combination of improper activities, these shorts have set about to systematically destroying OXYS share priceâŚFurther to the above, we note CDEL, has been investigated and suspended by the Government of China for illegal short selling.â
http://ih.advfn.com./p.phg?pid=nmona&article=70160811&symbol=OXYS
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Also you have finderâs fee and taxes coming out of that 100 million plus MDMNâs debts. So whatâs left after that?
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Finder fees? What finder fees?
Was that written in the contract?
MDMNâs finderâs fee to the party who brought the AMC agreement isnât going to be part of their option agreement with AMC. It will be part of a separate agreement they have with the agent retained to help bring about a deal.
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Do we know what those fees typically run?
Iâm not sure they are hearing that, I believe that is just their assumptions? IMHO
Does anyone else find it interesting that on the heals of this big share transfer, the last 3 days has been relatively uneventful and more importantly the share price didnât retrace back to the $0.015ish level.