MDMN - 2016-03-07 Weekly Discussion

To be even clearer, no one posting here is right all the time. Wizard is right far more often than most who post here.

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That’s certainly up to interpretation too. But that would be for each to decide for themselves as to what they want to believe to be to make their decisions on.

It was a nice summary Wizard gave us. It actually reinforces many points some of us have been saying all along, with MDMN and Auryn having a good working business relationship, Auryn having been fulfilling their contract negotiations and committed to going the distance in exercising the purchase option, etc…

I wonder if the Wizard had any chance to talk about JJ and Family shares? And if Auryn is still pursuing majority ownership in MDMN, however they may go about accomplishing that?

Can Auryn get to their Caren claim with or without using mdmn access roads?

If you look at the previously posted maps, there is a road within the Caren’s boundaries.

So what are you doing?

Buying?
Selling?
or Holding?

Do you know what investment decisions you are making in regards to MDMN yet based off of your beliefs?

That’s the only thing that matters. But it sounds like you are confused.

You know what BB give it a rest!! I’ve been here for 6 years without selling a single share and might need to be selling my position for a Loss like many others longs in the coming months.

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The question was to L&G. He has some deep convictions it appears about his thoughts on this investment. So I was curious as to how he relates those opinions to his investment strategy here, if he cares to share that.
Not sure how any of that has anything to do with how long anyone else has been invested here or what their life situations or future plans dictate that they will do?

I do hope all works out well for you. I hope you do not have to sell at a price you don’t want to.

In an INDIRECT fashion I think that we might reason that neither Nuoco nor Cerro would have accepted 5% of AMC’s shares in exchange for their properties unless they had some type of quasi-guarantee that the AMC shares they received would be in a company that controlled the ENTIRE mountain and the economies of scale that represents. A 5% stake in an AMC corporation without Medinah’s centralized properties and the ability to open pit various areas of the mountain would be severely restricted in value. Almost every porphyry on the planet is being exploited by open pit bulk mining methodologies.

The recent environmental studies concentrated on establishing the baseline values for contaminants in the water at 3 sites that drain the central plateau area that Medinah holds. AMC is not going to buy 210 million shares and agressively chase after another 300 or so million shares in a company they’re about to snub via refusing to exercise the option. THEY’RE CLEARLY GOING TO EXERCISE THE ADL OPTION OR SIMILAR TO THE NUOCO AND CERRO DEALS COME TO A MUTUALLY ACCEPTABLE AGREEMENT THAT CIRCUMVENTS THE NEED TO EXERCISE THE OPTION.

In a situation like this with the recent confirmation that Medinah’s Pegaso Nero property does indeed host a Cretaceous Aged (+/- 100 million years old) Cu/Mo porphyry (the largest of all porphyry subclassifications in this case being “7 Km on the whole”) in a well known “Early Cretaceous Porphyry Belt” composed of Cu/Mo porphyries Medinah’s exit point could represent the entrance point of a major capable of tackling a project of this scale. I don’t think AMC wants to give up any more than the 25 percentage points that will have already been doled out to others.

For me the key upcoming milestone centers around Medinah receiving the final approval for its production permitting which I believe is going to be a heck of a lot larger than the 500 tonnes per month that the Caren currently has. The NPV of AMC and/or Medinah depending on the option status will spike with that event.

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Doc

How long does permitting take in cases like you suggest?

I still wonder if Auryn has anymore MDMN stock. It would be nice if there next update cleared that information.

Doc, FWIW, I agree that AMC’s focus is on the gold, permitting and getting a decent size processing facility in place. But in terms of the Cu/Mo porhyry, I think that is a white elephant and will stay for way for the next 3-5 years, see article below

http://www.mining.com/mmg-swings-to-loss-and-books-784-million-write-down/

Having said that, major projects like the Cu/Mo are discussed in terms of 20-30 years. My guess is that it will take 3-4 of exploration work and year of permitting/engineering before a shovel of dirt is mined.

The market is where it is b/c there are concerns that our BOD are just dumb enough to accept a larger percentage of AMC in lieu of cash. This is a valid concern and one of the main reasons for the disconnect (not the evil market makers) as valuing AMC today is a nearly impossible exercise.

The good news: whether our BOD accepts the larger percentage or holds out for the $100M the ultimate outcome will be the same. As soon as AMC has determined whatever minimum metric they require on the ADL (gold/copper) they will tender for MDMN and most likely the 5% held by CDCH/Nuoco. The bigger question will be how long will it take for them to reach that point. We could be waiting until August of next year orrrr if some of these earlier production opportunities generate enough cash (for them) there could be a consideration to move forward a lot earlier.

One thing that is clear as day, AMC will never trust $100M in the hands of jokers who have created the scrambled mess known as MDMN over the past 20 years. They have no interest in being associated with MDMN and the easiest way to avoid this reputational risk is to remove it (through a tender).

For those who argue that 10/15/20 cents is an absurd level for an exit (while we sit here under 2 cents) I can only say that you would be insane not to be aggressively buying at these levels. A return of 10-15x times your money over a 12-15 month period is pretty much unbeatable. Especially when considering the risk of AMC bailing are very low.

IMO, this has been AMC’s game plan from the very beginning. Their inability to secure more shares via JJ has been the only detour in the path to owning the mountain thus far.

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Medinah’s Annual financial report is out:

http://www.otcmarkets.com/financialReportViewer?symbol=MDMN&id=151432

“There has been no stock split, recapitalization, merger, acquisition, spin-off, or reorganization either currently anticipated or that occurred within the past 12 months.”

Well more meaningless financials. I can’t understand why they can’t do basic accounting. They show revenue of $177k when they haven’t generated any sales. If they sold claims, that would be below operating income/loss.

Then they don’t consolidate MDMN Chile’s financial

Lastly, they are directly violating SEC Industry Guide 7, which prohibits putting a value on mining claims unless there is a feasibility study.

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I will let the more attuned posters comment on the changes in beneficial interests. Where did Claro go?

Best guess? Punta Del Este. I’m sure he’s already spent half of his recently generated MDMN proceeds on 8 Balls, Blackjack, and Women of the night. The Quijanos are a class act.

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Best thing is he is gone!!