Why do we have to pay Auryn now 50 million for an extra 5% when they didnt even want to pay us 100 million or 20 million? Kind of says we got strong armed on this one and our BOD took it
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Itās an option. MDMN would only do so:
- If they had $50M, which they donāt.
- If Auryn was worth $1B or more, which it isnāt
If those conditions are met within the next 5 years, you exercise the option. If not, then it doesnāt happen. Odds are definitely on the latter.
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What would be the good/bad of going with an IPO at this point for Auryn in a clean shell with these properties from MDMN and CDCH?
I take this as; instead of getting 100 mill we get 50 mill for an extra 5%
youāve made 5 erroneous posts within 5 minutesā¦take a breath
we get a total of 25% of the equity not the profits
we have to pay $50 for another 5% if we choose to do so in the next 5 years
your characterization of an MOU was correct
I would guess, after the deal is done, we receive more details on the near-term production opportunities (which are going to be a minimum of a few months away)ā¦this announcement in late April early May could/should be a positive catalyst for the stockā¦the market has already discounted this reworked deal and is why we are trading under 2 cents (please stop blaming evil market makers)
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In the end analysis, we gave JJ, 350 million free trading shares, some or most have hit the market resulting in a nice payday, while shareholders have received a non-tradeable equity position of unknown value, but admittedly some upside.
Who outfoxed whom?
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And if Auryn starts drilling the daylights out of the ADL, $50 Million for 5% of Auryn just might be a good deal which could then be sold for much more. MDMN could either end up BUYING the 5% (with past production or out of future production proceeds) and profiting from future production, or, if a suitor comes in wanting to buy some of our points, we could profit. Not altogether bad.
As brecciaboy has been saying, the future production is where the value is at - and is the focus of the parties at this time. Will we be around here in 5 years to find out? Nobody knows.
This is what many have been trying to say for a long time but a broken record is difficult to fix. Iām happy to finally have this piece of news behind us. Itās not going to move the stock but it adds another key leg to this investment and our ultimate exit. Anybody whoās going to complain with 10, 15, or 20 cents should find another venue to complain.
The math becomes straight forward at this pointā¦10 cents if the mountain is worth $600Mā¦15 cents at $900Mā¦20 cents at $1.2Bā¦(assuming 1.5B shares outstanding)
Some of us know how difficult a billion dollar valuation is to support but if this is a WCD anything is possible with time.
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They can be legally binding and Iām fairly certain there are financial penalties for both parties if itās not closed.
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No, his understanding is exactly right - you are incorrect. I have been involved (drafting and signing) many of these in the form of MOUs/LOIs, whatever. They are generally NON-binding, but accorded great weight in the negotiations and structure of the final deal.
It definitely moves MDMN into a new phase. In a way it is a death of the āto the moonā penny stock dream.
Positives: all the things Wiz has been saying about the properties being in the hands of professionals, money being spent on exploration, the positive results of exploration so far, etc., the potential of letting our guys out to pasture for retirement, etc. And yes we retained the 15% of NUOCO which is good.
Potential positives or negatives: now it really is up to the mountain. Auryn is going to set the stage, bring up the lights, turn on the music, and the mountain is going to need to perform. Auryn will want their shares back and the 15% of NUOCO back. They will want to buy them back as soon as it is a clearly a positive investment move to do so. Once Auryn has cash flow from the high grade gold and is sinking lots of holes into various spots on the mountain and issues a resource report or two then we will be on alert. BEās āthis yearā seems pretty aggressive to me but surely they will want to make the attempt as soon as it makes sense for them to do so.
If I had to guess, there is some number or a range of numbers already in mind as a ātake outā number that Auryn knows they need to get to in order to get many of the bigger shareholders on board. They just have to get to the point where it makes sense in terms of risk for them to make that move and they have cash flow behind them to enable the financial side of it, whatever that turns out to be.
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Looks like it has already been decided that any money, up to $50 mil, we get from production in the next 5 years is going back to Auryn for 5 % more. Gawd, I hope Iām wrong. I feel sick. Iām 8 yrs. in this investment. Have not sold 1 share. But, I will stick it out. JMO, but I think the shareholders need an advocate on the board that will truly protect our interests and bring some $ to our long waiting pockets. āWet our beaksā a little. Please.
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Or, if you look at it that Auryn will be financing the production of the Caren and other mines and would not also have the $$ to also pay MDMN $$ up front. That was to come from the Letts who bailed. The more I watched those clowns Iām glad they are gone. So we will receive 25% of the production money that will be coming.
MDMN and AMC will be meeting in Chile before the notary to close the deal. Once that happens, AMC owns mineral rights on all of the ADL. That doesnāt mean they actually own the land. They will negotiate surface rights and must pay a fee to explore, drill, build roads, etc.
It would help if all shareholders understood this (read them all, but focus on 8/10 for your questions): http://latinlawyer.com/reference/topics/46/jurisdictions/3/chile/
The who is not MDMN. I donāt know the name of the party though. MDMN did finally come to terms on a small portion of surface right in that area recently but didnāt have the money to pay them. Regardless, the area is not nearly large enough for the program AMC will require.
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If we get 25% in production in the coming months Iām good with that and the stock should begin to move north as we finally get to see this investment gain $$ or am I wrong?
like I saidā¦his characterization of an MOU was CORRECTā¦Bubba you are pure entertainmentā¦there must be an echo in hereā¦your buddies at MDMN, who youāve adamantly defended all these years, should hire you to proofread their releasesā¦fortunately, we donāt have too many more to suffer through
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After todayās release does anyone think Auryn might jump back into the Market and pick up shares?
Not happening and not even on the radar so no reason to waste any time on the topic. Itās a different mining world today. Private capital is the way money is raised. The days of getting a shell and raising funds are over, imo.