MDMN - 2016-03-21 Weekly Discussion

Weekly Discussion
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770000 for sale at .0139 April is 2 weeks away from the rumored meetings( not factual) Who wants them??

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Same 2 heads CDEL and ETURD on the ASK

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I just revisited the latest Medinah shareholder update of Feb 25,2016 as prepared by Mr. Karra. This very recent and positive update concluded in saying that the $100 million and 15% terms of the original contract remains intact. What has changed since then whereby many posters are referring to new payment and ownership contract conditions? I may have missed something more recently as we are currently travelling a bit and not paying as much attention to MP. Again, I am just wondering what has really changed ?
Could Mike, Kevin, CHG or any of our more knowledgeable posters please provide an explanation?

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Hi Funnyman,

My gut would be that some obvious “win-wins” have surfaced and both parties wanted to better their overall position at the expense of potential “losers”. If Medinah had its druthers it wouldn’t take a check for $100 million and turn around and hand perhaps $20 million of it to the tax man. AMC with the leverage at hand to put a dollar into exploration and increase the NPV of the deposit by 10 times that amount would just as soon preserve capital while riding that wave of LEVERAGE. AMC doesn’t want to raise money by paying an investment banker a bunch of money to raise the purchase price via an IPO in this current mining environment.

I would think that Medinah would prefer a slug of cash up front or as they need it for working capital and hopefully share repurchases followed by dividends. Those “extra” AMC percentage points are going to grow a whole lot quicker in value than “extra” cash making perhaps 3%. Recall that AMC paid about $15 million or so (a guess) for 210 million Medinah shares. They’ve got an incentive to design “win-wins”. Who are the “losers” in these “win-wins”? The tax man, the investment bankers and perhaps the commercial bankers. AMC’s incentive would be to crank up the NPV of the deposit as high as they can before eventually calling in the heavy artillery when the CAPEX requirements get really steep. This way they can sell less percentage points of the action in order to fund the CAPEX.

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Little confusing but this is my understanding as of now.

Similar to how it worked for Cerro…the Option agreement would be vacated and replaced at the same time with a new finalized agreement that goes into immediate effect when Les gives his thumb print etc at the Notario in Chile. This will pretty much wrap our investment such that it might be a good time to move on from MP and simply monitor PRs from Auryn going forward since Medinah will start to lose its identify as a distinctly different company with all news/noteworthy events coming out of Auryn.

I see little or no reason for Auryn to put out any news prior to this happening unless they(or Medinah) decide to give a heads-up that they are finalizing a new deal in Chile.

One other thing. There is an obscure rumor that Auryn will be distributing profits from the Caren mine/producton etc each quarter so its partners may receive cash as early as July this year.

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Things are progressing very rapidly in terms of how mining projects progress, especially one that is the size encompassing the Alto. Thankfully, we no longer have the historical MDMN BOD steering this project to monetization and success. I’d like to remind those posting here that AURYN will be mining much sooner than later in order to help meet the expense of maintaining the following payroll:

EXPERIENCED TECHNICAL TEAM

•David Bent.- Qualified Person
David has over 40 years of experience exploring for base metals, precious metals and uranium in over a dozen countries. He worked for Noranda Mines for over 27 years and also for Normandy and Newmont prior to becoming a consultant geologist working with Junior exploration companies in Canada and Peru. He has worked on several projects that have been developed into World Class producers such as Real de Angeles (Ag-Zn-Pb) in Mexico and Antamina (porphyry Cu-Zn) in Peru.

•Luciano Matías Bocanegra – Director & Principal Technical Advisor Luciano has over 12 years experience, he is specialized in the porphyry-epithermal environment with additional experience in diamonds, bauxites and alluvial gold exploration. He executed exploration programs in Chile, Argentina, Brazil and Peru, working for Rio Tinto and Hochschild Mining. Last year was working as consultant for private investors and Junior companies.

•Mario Arancibia Nanjarí - Project Geologist
Mario has over 8 years of professional experience in Copper exploration working for major mining companies in Chile and Panama.

•Felipe Andrés Astudillo Rojas - Project Geologist
Felipe has over 6 years of professional experience, mainly working in Porphyry Cu-MoÂąAu and IOCG systems in major and medium size companies in northern Chile.

•Enrique Lopez Albujar – Director, Operation & Logistics Manager
He is an electromechanical engineer specialized in HSEC, and over 13 years experience in mining industry working for major mining companies in Peru.

•Italo Volante – Director & Legal Advisor

•Patricia del Carmen Opazo - Mining Claims Advisor
Patricia has over 8 year experience as geomensor engineer in the mining industry and academic teacher. She worked with important mining companies in Chile, in charge of mining claims departments.

•Aquiles Alegría – Consultant Geologist
Aquiles has over 27 years of experience in exploration, evaluation and production of mineral deposits. He has been working for international mining companies in South America, Asia, Europe and Australia. He had managed the local group of exploration in CODELCO North Division in Chile, and Superintendent of Geology for Andina CODELCO Division. As well as Exploration Vice President in Andina minerals and Inversiones Benjamin Holding. Currently advises mining exploration companies in South America and participates as a Board Member of three mining companies.

•Katherine Narea Cavieres - Data Base Geologist
Experience in data base and software’s management. Their main experience is in research Institutes, supporting in applied research, innovation and development projects for Mining and other industries.

The frustration levels don’t need to be reiterated daily on this forum. I’d suggest the “daily posters” take a break until we have the next round of news released. Maybe a little vacation would help! :smile:

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Thanks Doc for the very simplistic (babytalk) explanation of these workings about how the contract conditions may be suspected of being changed for various reasons.
On another old topic, do you have any knowledge of Auryn’s recent efforts to obtain more of previous management’s shares or have they just abandoned this exercise? And if so , what will their new strategy be to acquire control of MDMN etc? And if you have already addressed this issue, pls refer me to what day and I will find.
And lastly do you believe Auryn will soon become a public company before the MDMN etc option is exercised? I do not think I want an interest in a private entity.

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Continuing the discussion from MDMN 2015-12-21 Weekly Discussion:

Continuing the discussion from MDMN 2015-12-21 Weekly Discussion:

Continuing the discussion from MDMN - 2016-01-04 Weekly Discussion:

Continuing the discussion from MDMN - 2016-01-25 Weekly Discussion:

Continuing the discussion from MDMN - 2016-01-25 Weekly Discussion:

Continuing the discussion from MDMN - 2016-01-25 Weekly Discussion:

Sadly, I have to agree 100% with BE. He has hit the nail on the head with his post.

Continuing the discussion from MDMN - 2016-03-14 Weekly Discussion:

Continuing the discussion from MDMN - 2016-03-21 Weekly Discussion:

Continuing the discussion from MDMN - 2016-03-21 Weekly Discussion:

Mike, do you think this obscure rumor has merit?

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Plausible although I would think the first payment would be more symbolic than of much substance.

Still have a little way to go before then. That darn Notario again!

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Unless MDMN is negotiating something North of 30% in AMC, CDCH is a way better buy. I don’t think MDMN should give up on the $100M. It’s a calculated risk but they have plenty of leverage in this situation. It doesn’t surprise me that there are already strong rumors that they are considering revised terms. The market has been discounting this possibility for awhile now. This is the “disconnect” that many have blamed on everything BUT the actual cause of the disconnect.

There are many ways to adjust the existing option to our benefit but, given our BOD’s challenges for basic math, long list of poorly structured deals, and tendency for self-dealing, it’s very diffucult to assume that the new terms will be good ones.

It’s unfortunate that they don’t have any competent advisors when it comes to this type of negotiation but most legitimate advisors won’t work with scumbags like Les, JJ, etc.

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Man I sure wish Kirkland was still here. He would have been a great advisor

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Are you referring to “Kirk”?

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No, he is referring to an ex-board member, Kyle Kirkland, an actual “bona fide” executive with real public company experience, who apparently got sucked into this mess via common Chapin/gambling contacts, and summarily got out of Dodge as quick as he could once he assessed the quality/integrity of the folks he was working with, IMHO. This is pretty much public knowledge and easily discovered if one reviews our history.

He has an impressive background, Harvard MBA, etc., and would have been a great asset for our company, but he quickly decided he wanted no connection with Medinah. You’ll find alternative opinions, feel free to choose the one you find most believable.

Here is Bloomberg’s summary on Kirkland’s credentials:

Bloomberg - Are you a robot?.

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He did little or nothing for Medinah. He had absolutely no experience in the mining business. He never did any promotion for the Company or help the share price. He left because he didn’t like having to deal with pissed off shareholders. His work with Steinway appears to involve him trying to self deal the assets away from the Company to himself and of course he now is in charge of a Casino which is pretty shady business to be involved with don’t you think? (Read the old Steinway filings. Let me know if it reminds you of anybody we know!)

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Whether CDCH is a better buy or not doesn’t really take away from Medinah does it?

By the way, is there any warm bodies left over there with Day’s departure? With a mere 5% of Auryn, and no known way to self generate money on their own, its seems far more likely they will need to sell their 5% to stay afloat than Medinah’s much larger percent especially if it takes longer than expected for Auryn to generate a nice cash flow so it isn’t as straight forward as you imply that it is a better buy in any case. (Further…CDCH is thinly traded…much more difficult to start or exit a substantial position without adversely affecting the share price. Medinah bloated share structure at least has some advantages. As of September 30, CDCH had less than $3000 in cash. (I assume they now have nothing at all.) Filings do need to still be made and at least some minimal expenses will need to be paid. Something has to give. Shares will need to be issued or percent of Auryn sold. They have no other assets. )

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I am sure the Trustee, exercised his fiduciary responsibility, and would not approve/sign off on a deal that would leave the Cerro terminally ill.

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I have looked into the “cash call” issue. Conclusions…it will not be an issue for Medinah assuming they conclude a deal with Auryn next month. (ie Medinah will not have to dilute their position in Auryn in order to make future cash calls. Details on how this will be done will come out in the future.)

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It’s probably outlined in the auxiliary agreements. … sorry Mike, couldn’t resist