Yes, something has changed. This update is dated Feb. 2016.
Says, "Based upon the positive results published by AURYN, negotiations are ongoing between the Companies to consider AURYN’s outright purchase formula for the Company’s Altos de Lipangue (“ADL”) property claims at a much higher ownership holding that would enhance Medinah’s long-term prospects.
Since the contract only talks about one purchase formula. That being the $100 million dollar minimum for 85% of the ADL. Then, the price of the $100 million dollars could very well be going up in price for Auryn to purchase their portion of the ADL.
Rather than dreaming with my eyes wide open I like to be realistic but open to pleasant and unexpected surprises and I welcome both opinions (Fadein’s and Baldy’s).
Both arguments are very valid and we will find out… “soon”
In support of Fadein’s argument, the exercising of the option will be the very elusive “stamp of approval” that Medinah has been going after for two decades collecting a series of ignominious fiascoes.
The stamp of approval alone is a catalyst and has done miracles for other penny stocks, with or without a naked short position.
Not going to get into share price, option price, etc. But i do think it is worth noting that when AMC signed the option agreement the PEN (Peruvian Nuevo Sol) was trading at 3.186 to the $1. It is now 3.4991 to the dollar or rougly 9.8% higher. That means if AMC were to exercise the option price today, they would have to pay an additonal $9.8 million PEN equivalent.
The Chilean peso has not devalued vs the $ as much. It was 672.75 on signing vs 708.854 today.
Earlier CDEL was on the ask @ .0215 and backed off to the .024 it is currently setting on. Maybe, just maybe, the seller isn’t looking to be as active as in the past.
The bigger test is going to be “what happens if/when” the larger buyer is filled. Can the stock hold it’s gains? This will require some new bid support unless this large buyer reloads. Based on the way they have showed their entire order over the past week I would guess they won’t reload, at least immediately.
