I have been playing the JNUG which is the triple long on the Junior miners. Just a couple of months ago I bought at $24.00 and recently sold at $80.00. Just following my own advice as to a pop in Gold prices followed by one more pull back. fwiw
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The following statement from the YE Financials I find interesting, since the contract only states a requirement to spend $1 M and not $10M so it makes me wonder if this gives some support to the notion that there maybe auxiliary agreements afterall!
AURYN Mining Chile, SpA, contractually, will expend up to $10,000,000 for surveying, drilling
and exploration of the claims.
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WIzard, I was thinking that you may be missing one piece in the census trying to determine if there is a short position in MDMN. You started with the basis of 1,345,603,000 shares outstanding. Since you can only short shares held in a brokerage account ( forget naked shorting) you can eliminate all those shares that are held in certificate form. In other words the outstanding basis should be what is held by Cede & Co. which is 966,739,561. Just a thought worth considering.
That was along the lines of my reasoning. I donât follow tons of stocks and Iâm not sure any of them that can go up 3 or 4 fold over the next couple years. I know some people like to trade around back and forth among stocks. I donât think I have the time or know how to get that down effectively so Iâm more interested in buy and hold.
Also Karl, thanks for your input on JNUG, I will keep that one in mind if gold starts another sustained rally. I havenât tried leveraged ETFs in the past because knowing me Iâd get my timing off.
Thankâs for everyoneâs feedback on whether they would buy at these prices, if they were in the position to do so. It is tempting, considering you could even flip them at .02. But I think I will just stick with my core position. It looks like Auryn might be going into a quiet period. Perhaps the JJ share issue has not given them any incentive to be concerned with the share price at this time. The last time that happened, we went down to .012. Plus this is looking more like a long term hold of a year or moreâŚ
HaâŚcoughâŚvery funny andâŚno!
I would like to point out this phrase from back in February:
âBased upon the positive results published by AURYN, negotiations are ongoing between the Companies to consider AURYNâs outright purchase formula for the Companyâs Altos de Lipangue (âADLâ) property claims at a much higher ownership holding that would enhance Medinahâs long-term prospects.â
It should be clear that Medinah did receive an offer from Auryn to exercise the Option that contains revised terms. They have very likely been going back and forth since then. There remains an excellent possibility that the Option Agreement will be exercised in the very near future. I think we may hear something from Auryn in a couple of weeks or so just before production commences on the Caren. (Note: The last official word on the start of production was Early April.) I hope Medinah takes the time to very carefully explain the benefits of accepting the revised terms compared to the existing $100 million, 15% which we may not have seen till 2017. IMO, if Medinah is going to accept Aurynâs revised offer, it will come right before production commences in order to reap full benefits from the cash flow. The cash flow may end up being far more significant sooner than most realize with the bonanza grade gold nuggets they have found there plus perhaps the Fortuna mine coming on line shortly with another 5000 tons/month production then followed by the Merlin vein mine.
OhâŚand if you were wondering why it has been so quite latelyâŚread the above paragraph again.
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And it says nothing about revising the $100 million amount in exchange for increasing the 15% ownership percentage
Yes I know what he did I am just saying that the amount held by Cede and company should be use to determine the short shares in relationship to free trading shares instead of shares that are outstanding since it gives a better picture of the significance of the short position. JMO
The only thing Auryn has to give Medinah right now is an increase in ownership in itself/production revenue rights etc. It certainly doesnât have $100 million(or more) laying around to shell out. Even if it did, it needs that precious capital to develop the mountain. The $100 million will be reduced in any revised offer from Auryn with 100% certainty. Auryn will not be in a position to shell out $100 million for the existing Option terms till they have drilled enough to bring in a Major mining partner who would then help come up with the $100 million if that proves to be necessary. (IMO, it wonât be.) This route would occur at the very end of the option agreement.
As with most shareholders, I am sick and tired of everything Medinah. I want to see this resolved yesterday. With Juan now long gone, there is no reason why Management canât make sensible decisions to wrap this up.
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As you put more and more shares into certificate form you should be increasing the number of short shares as a relationship to float. The certificate shares are really not tradable except in private transactions. This is behind the premise even thou it does not seem to work for shareholder requesting their shares in certificate form in order to force the shorts to cover if there are any. I just feel it is more accurate to use ony shares held in street name in determining the significance of the short position, if any. JMO
Our hopes and dreams are with an entity that doesnât have the money to exercise the option OR develop the mountain? Really?
They have the resources/know how to exploit the gold veins on the Alto. However, billions of dollars are needed to exploit the porphyry targets and develop a mine(s).
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JMO, wait for 2017 and the $100 miilion and 15% of AMC. Divy out the net proceeds, fire everyone at MDMN, have the remaining Day guy at Cerro, run both companies as shells, nominal expenese, distribute whatever divies come from AMC to shareholders and at the moment you can sell the 15% of AMC, dump it with proceeds to shareholders, and burn these shells.
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Do you have the patience to wait till Aug 2017? Do you think the old men at Medinah will wait till then?
Do you think Auryn would even bother to exercise the option at the point and shell out $100 million if they are happy with the cash they are generating from the Caren/Fortuna/Nunco/LDM? I can tell you that just within those claims, there is enough gold/copper to keep them busy for a lifetime.
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Agree, on all these points Mike. We need to be achieving important milestones, and removing MDMN from our conversations.
Good questions, yes i can wait but i have only been in for a short time by any measure. If the old men at Medinah donât want to wait then why did they agree to direct sales of Cerro, Nuoco et al? This, IMO, took away a lot of MDMN leverage.
I do agree, there is plenty of mining for AMC to do without tackling the copper and the huge costs. I would have hoped the new attorney would have structured something that protects MDMN, but probably wrong on that.
I agree except I would sell all assets except the 15% Auryn ownership and I would pay out a liquidating cash dividend to all shareholders getting preferential tax treat as a return on capital and then I would put the 15% remaining interest in Auryn into a simple royalty trust that is tradeable and pays out a monthly cash dividend .
To me those actions more or less say it is a done deal or otherwise very close to an agreement. Start of production equals game over.
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It wouldnât be surprising to see the old men cashing out via nuoco fir an immediate event and participate in the rest alongside us. We are only aligned if we all have same ownership terms