The Mining Play

MDMN - 2016-03-28 Weekly Discussion


You would have us wait another year??? You do realize that Medinah is flat broke, the share price is in the toilet and there could be nothing left of Medinah by then besides a few shareholders who longed for the day when we were above 1 cent?

Meantime, Medinah would miss out on millions in production revenue and after waiting for a year with nothing new to show for it…what then?

Auryn would probably end up offering the exact same deal that they have offered now.

Due to Juan’s involvement with Cerro and Nunco, it is quite possible that Auryn would have simply just walked away entirely and just mined the Caren if no deal was reached with those properties.

In any case, success has finally arrived on the doorstep. Not surprised at all that most here don’t see it.


AMC owns 7,000 hectares already and has a preferential option over MDMN’s 3,000 hectares.

It’s the only logical choice to me John. This is MDMN. There is no guarantee that MDMN will ever receive $100M. AMC has enough land to mine for a decade without worrying about the porphyry or MDMN’s Merlin claims.

It’s quite possible the increased percentage we receive on all those claims in light-grey offsets the lack of receiving $100M. In addition, IF the porphyry is economical, the increased percentage in the sale of it could also offset the $100M.

Aside from that MDMN is flat broke and in essence is in a death spiral. Yesterday they had $250K in bills due for taxes and surface rights. If not paid, the tax is double, immediately! In fact, we’ve been paying double the taxes for years because we pay them late all the time. Raise $250K, there’s 25+ million new shares issued. And as you know, those will come into the market driving the price down further. And so on.

I haven’t even begun to discuss the contract and why it’s beneficial for MDMN to close this now!

We both know at this time, MDMN’s land is not worth $100M in it’s current state of development. Nobody would give them that for it until they put some work into it. They’ve got no money to do so and no expertise to do so. AMC has already met their side of the option. If AMC feels it’s worth more than $100M to them, then they exercise some time down the road. If they don’t feel it’s worth it, they don’t exercise and we get $0 and we have no percentage in ANY of AMC’s claims except the 15% we own in NUOCO.

Is the above likely? No. It’s more likely that AMC goes into production, makes a crap load of money, proves a big porphyry and simply buys MDMN cheaply and never exercises the option. And the only way they would do that is if they know that the porphyry is worth it. At least if we have a greater percentage, we’ll get more than the $100M valuation for it at the end of the day AND we start receiving revenues on the Caren and Fortuna. Doing a deal now de-risks both sides of the equation (both for AMC and for MDMN.)

Would I like to see some cash in the deal? Yes. Does it matter to me? No. And the truth is, as Mike said yesterday, give me all the percentage in AMC I can get and let them keep the cash because they are FAR more likely to deploy the cash in a more appreciative manner than MDMN.


I believe that the Nuoco and CDCH deals have not been fully disclosed. JJ gave up his 50% of CDCH Chile in return for something. and I do not believe it was simply for the return of Madre de Dios properties. In any case I do believe that we should stick to our guns on the $100 M in total, but possibly defer the timing of payments over a longer period of time. The more money that Auryn Sinks into the property the more valuable our equity ownership becomes in Auryn. So the longer we wait the more valuable our interest becomes.

I still believe they need to pay us at least $20 M up front to exercise the option and maybe the balance over the next four years in conjunction with any percent of production revenue. JMO


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It is already a done deal as far as I can tell. Enjoy it. Auryn will dramatically increase the activity on the mountain, they will start to release news, and the price will start to recover. No more just sitting around watching paint dry for another year while our stock/investment goes into a final death spiral.


Not going to argue this point and, as stated earlier, I’m guessing Claro’s shares along with shares issued at a penny to pay bills have both been big weights on our share price. I’m hoping the collective shareholder base finally challenges this BOD, BEFORE they issue themselves 100’s of millions of shares in exchange for the $2M+ supposedly forwarded to the company. Similar to the mysterious, inexplicable bills that hit CDCH (who supposedly lost claims for not paying said bills), it’s a bit of a head scratcher why MDMN spends million on who knows what and then struggles (for months is what I’ve heard) to pay the $250k and then (most likely) issues shares. I would even suggest, gasp, that shareholders initiate an audit for MDMN’s financials and the shares issued to insiders, after the “new” agreement with AMC is finalized. There is a very real possibility that 100’s of millions of shares, issued to insiders, could be cancelled. A creative alternative to Doc’s imaginary buyback in the absence of upfront money??

I don’t pretend to know if waiting for the $100M is the right option or not. There is clearly risk due to how poorly MDMN has managed the process and their balance sheet. To think that a billion shares were issued for a bunch of worthless properties when we could have been buying the adjacent claims (now owned by AMC).

There is a reason why we are trading under 2 cents while CDCH has doubled. Transparency on the outcome of this option should be a positive either way. Looking forward to it.


Ignore this site today .- April Fools Day. - Why torture ourselves?


I’d like to be fooled today by the pending update. Accoring to Mikes thoughts. The bid support is looking good to. IMHO



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The concept isn’t really that difficult. Once Medinah gains access to cash, whether it be through a down payment or cash flow from production, if the share price is in the toilet any excess cash above that needed to fund the monthly burn rate should be put into buying back and cancelling ridiculously cheap shares. This is especially true if you think the cash is going to be flowing for perhaps 30 years.


There is one thing that nobody on this board has ever mentioned or addressed.

And that one thing is OPPORTUNITY COST.

For the amount of time some of the shareholders have spent posting on and/or reading this board (me included), we could have flown to Chile and started the drilling ourselves.

Just sayin…


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It’s pretty funny as soon as a big BID comes in ETURD or CDEL or whoever else advertise a BIG ASK and we go no where. Whatever No more stocks for me. NO MAS I’m done with this corruption if it’s BOD or MM’s!!!

Yesterday’s big trade was another example of the shenanigans going behind close doors


Hey Lean, take it easy. Brecciaboy is simply doing his best to try to help management navigate the waters here, apparently to no avail (from what people are saying on this board today). Leave him alone - he’s just trying to help. Has anything YOU have written actually helped this situation? Has anything ANYBODY has ever written here ever helped this situation? The answer is no. So, simply express your opinion and move on - I’m sure everybody will respect what you have to say and take it under advisement.


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I don’t think brecciaboy has EVER failed to acknowledge management’s perceived challenges - in fact, I know very well he has been critical in the past. It’s just that he CHOOSES to post positive suggestions/information on this board to try to help things along. You, on the other hand, are emotionally out of control attacking another shareholder for giving positive suggestions. Maybe you could help yourself by simply providing your OWN opinions and just move on. I think a lot of folks, me included, appreciate what you have to say - just lay off criticizing somebody who is obviously trying to help.


There are forces at work here keeping the share price down. BB has suggested one sure fire way to eliminate this manipulation from happining. I agree with him 100%.


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What was his way?