LG, I told you Wiz is taking a breather! It concerns ME that you keep badgering folks to make up stories to placate you. If they have knowledge or solid opinions and wish to comment, they will at their own convenience.
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I agree give us 50 up front and more equity in Auryn and letâs consummate this marriage
I would be happy if they gave us as little as about $18M upfront, so MDMN could pay off its debt and give shareholders a .01 per share cash dividend and then allow Auryn to go into production and generate another .01 share cash dividend from production over the next 12 months. After that I would hope they are still tied to the $100M total cash purchase option and we get the balance of $82 M down the road. JMO
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You already know my opinion. I think whatever needs to happen for the MDMN claims to be fully consolidated under Masglas / AMC for immediate exploration and to give MDMN access to early cash flow from the Caren / Fortuna is the right deal.
I think you have very little understanding of the sector or the types of deals that are occurring given what you continually demand MDMN should insist upon. I think you have very little understanding of the contract or MDMNâs current financial position given what you think MDMN should insist upon. Iâm tired of you insisting I take youâre view. I think itâs the wrong view and that itâs unrealistic and isnât going to happen. You may think the same of my views.
Iâm perfectly fine with a no-cash deal and a significantly larger percentage of the whole mountain given what I know about the Caren / Fortuna claims and MDMN and the contract. I donât expect you to change your opinion. In my view, youâre not interested in learning about whatâs real. Youâre only interested in reinforcing your own views and doing whatever you think is necessary to pump up the price asap.
You seem to think the MDMN BOD would be negligent or incompetent if they take a no-cash deal and donât demand this or that. I think the best thing and most responsible thing they could do is close this up as soon as possible with the best terms theyâre able to get, whether that means cash or no-cash. They know AMCâs internal numbers. They know their own. You and I do not (at least in part.) Iâll leave it up to them to decide.
If a no-cash deal with a much higher percentage is the only path to getting this closed before the option expires, I think theyâd be foolish not to take it. If that is the case, you think theyâd be foolish to take it. We disagree!
There. Now nothing else needs to be said on the matter. Iâm not looking to be convinced otherwise and neither are you. Could you drop it now?
11 Likes
It is you that overwhelming values their opinion, so please do not put everyone in your camp and please do not speak for everyone on this board!
I value more sound judgements and opinions based on facts no matter who puts it forth, with the exception of the few on my ignore list!
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I think you ALL are on your high horse pretending to think you have any idea what these people are doing behind the curtain. As a result, everybody should simply express his/her opinion and be done with it. I was told some time ago intimately familiar with the situation that some of the principals actually enjoy the entertainment of some of the crack-pot theories advanced by a few of the more vocal and obviously jaded denizens - which is why I no longer bother. So, best thing to do is yes express an opinion, but do feel privileged to hear the opinion of others, especially those who do not have an obvious axe to grind.
Do you think this is realistic? Give me one sound reason AMC would put $18M (or any money) into MDMNâs hands to be deployed unproductively?
AMC can simply walk away from the option today if they choose to. (I am not saying they are going to.) But letâs suppose they did. Where does that leave them and where does that leave MDMN? Given what I know about both companies, their capabilities, their cash positions, and what they have access to over the next 6 - 12 months, Iâll take AMCâs position all day long if thatâs the case.
Regardless, itâs not going to happen. JJ was the real reason why no sane deal occurred over the last 15 years. That problem has been removed. Itâs left us on life support to be sure (1.3B shares and NO money and a smaller portion of the claims than we had when we started.) Nevertheless, the patient is still breathing and the mountain is big enough to revive us. MDMN and AMC will reach a deal. Weâll go into production, get some cash dividends, prove the porphyry, and cash out. We can stick around as this happens or not. But it will happen regardless.
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Never said it is realistic, I just said I would be happy with this. I also stated in my previous revised post that I do not care where the positive cash flow comes from, whether it is first production or exercise of the the purchase option. The key is that MDMN becomes positive cash flow sooner than later in order to first eliminate debt and the need to issue more stock for operating expenses and then to eventually pay a cash dividend. Of course it will all probably happen in steps which will be hopefully laid out soon! JMO
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I believe HR said it best and it is worth reading again.
As suggested by several other posters, read the Auryn contract and use that as the lowest common denominator of whatâs what. Do not fill in the blanks by rounding up or rounding down. Assume that there is nothing else but the contract governing the future of this investment. However, supplement that with Aurynâs updates. Do no supplement it with Lesâ updates. Do not supplement it with message board opinions or rumors (positive or negative).
Casually follow the price of gold and macro-industry developments (i.e. check Kitco.com every morning). I would also read Wizardâs Auryn blog, but understand when he is stating something factual versus opinion. Heâs usually pretty good about stating what is specifically his own opinion.
Thatâs it. Thatâs all you have to do. Investing in a mining company is not a day-to-day activity. It is a month-to-month or quarter-to-quarter activity. The share price will work itself out once production begins - once production begins according to Aurynâs guidance, not any posterâs or Lesâ guidance.
Anything else that you are reading, with the exception of the helpful geological explanations by CHG, mdmnholder, MikeGold & BrecciaBoy, is just speculative nonsense that if you donât treat as âfor entertainment purposes onlyâ youâll drive yourself crazy wondering what your investment is all about. Trust me, ignore it. I assure you that youâll feel a lot more comfortable about this investment when you donât let the noise of this board alter the lowest common denominator.
And one final thingâŚdo not let the share price affect your interpretation of the fundamental developments of ADLâŚunless youâre looking for an early exit. If that is the case, youâre going to be disappointed.
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L&G, what I would like to see and what is IMO feasible are two different things. And here is where I agree with Wiz.
Letâs step in time, pre-AMC, what did we have? Bifurcated ownership of MDMN Chile and a bunch of other claims. Our boys did not anything about mining and there was zero progress made towards monetizing the claims. Every couple of years MDMN would go through this elaborate process of vetting major mining companies, money firms etc., all under strict confidentiality. The results were picking the wrong partners and having fail to deliver one penny. How many years were wasted with Partner A and Ulander? How many shares were issued?
More importantly, how much work was actually done toward monetizing the claims? Zero
What was the future for MDMN? Nothing
Enter AMC, no-upfront money, but real mining people, spending millions on exploring the claims and bringing validity and credibility to the âmountainâ. Do we know all the terms on the Nuoco and CDCH deals, nope, but I donât think AMC is holding back that info, rather our BOD/Trustee. AMC is doing just what they said they would be doing.
The vacuum is on our side in regards to info and the incompetence of our BOD to convert JJ in common shares without a leak-out/limited amount of shares that could be sold in the market.
Bottom line, IMO, there appears to be a future with AMC where there was none with MDMN. Upfront cash or not.
There are really only two options
- Ride the future with AMC and whatever renegotiated deal they strike with our incompetents
- Stick to the contract and play a game of chicken, which IMO, MDMN will lose and on to Partner 4,5,6âŚ
Question, if the share price were at $.07-$.10 would there be this anger? Now ask, who is responsibile for the share price trading where it is today. Not AMC.
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BTW I also know the cash situation for all companies involved. The point is Auryn has been lending MDMN cash to avoid issuing stock. It would benefit Auryn to make sure MDMN has sufficient cash on hand to met all operating expenses thus avoiding the need to issue future shares. Does Auryn have 18M readily available? Probably not and if it did it would probably use it elsewhere. I do believe Auryn will have to issued some cash equivalent whether its $2 million or $18 M or somewhere in between, because there is a big benefit for them not to have MDMN issue shares for operating expenses, especially at such depressed prices. JMO
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If the share price were hovering in the 7 -10 cent range I would be ecstatic. But thatâs just me.
http://theminingplay.com/t/mdmn-2016-03-14-weekly-discussion/1051/171?u=wizard
From 4 days ago
Lets advance this a bit. Iâm in a favor of a handoff to AMC as soon as possible too. I have offered my opinion on some acceptable terms that must have a cash component or a short-term royalty or a brecciaboy like strategy implemented.
Are you saying you are ok with nothing to ENSURE immediate pps appreciation? If you are, i strongly disagree. Pressuring them for the $100M would be a wayyyy better idea than any deal absent of IMMEDIATE PPS appreciation.
Iâm not defensive, Iâm tired of responding to you. You have stated multiple times that AMC is strong arming MDMN or that MDMN BOD are terrible for not leveraging what they have or insisting on this and that. I simply disagree and have stated reasons why including your lack of comps within the sector and lack of understanding of the contract. MDMN is not in a position of strength here. The people with the money are â thatâs always the case when the sector is weak. If gold was screaming, the economy was booming, and large porphyry systems requiring Billions in capital were in favor, perhaps things would be different.
6 Likes
First you said:
âYou already know my opinion. I think whatever needs to happen for the MDMN claims to be fully consolidated under Masglas / AMC for immediate exploration and to give MDMN access to early cash flow from the Caren / Fortuna is the right deal.â
Then you said:
âDo you think this is realistic? Give me one sound reason AMC would put $18M (or any money) into MDMNâs hands to be deployed unproductively?â
These are very conflicting statements. Weather its for the option or cash flow from early production, why would Auryn give MDMN any cash?
I think very one assumes just because production is starting MDMN will get cash flow. Why would Auryn do that?
A big problem that has been discussed very little on this board is the fact we will own a minority interest in Auryn, not a free carried interest, or a smelter royalty. As a result we will be at the mercy of Auryn in terms of any cash flow being distributed to MDMN. So I ask again, why would Auryn distribute any cash from early production? They are going to want to use that cash for exploration, which I donât think is a bad thing, but I do not think we should get our hopes up to much for early cash flow. IMHO this is a long term play, MDMN will receive cash when a major wants in and will purchase our interest in Auryn, sit back and relax itâs going to be years not months, IMHO.
1 Like
How is that a conflict? He responded to someones wishes for 18 mil and said why would they do that ( give me one sound reason) just like you said.
I personally think at least some cash should be part of it because we (mdmn) need it to operate and they do need to pay to play at some point!