The Mining Play

MDMN - 2016-05-02 Weekly Discussion


Then the MM’s put a STOP sign up 1.1 million on the ASK .017


Hi Newleaf,

What suggests to me that something like that is the end game is the recent PR stating that Medinah was granted an option to gain another 5% in AMC for $50 million. Say what? That’s not Medinah talking; that’s some 3rd party with their arm around Medinah saying to AMC WE (not Medinah) want that option thrown into the Medinah “package”. WE want it “packaged” into the Medinah corporate structure for US later on.

Can you imagine the current Medinah management as weary as they are thinking down the road that far and desiring to fork over $50 million for another 5% of AMC and thereby stall their own payday? Medinah already has 28% of the action in the mining district when you factor in their 36.25% of the action in the 4 Nuoco properties. There’s no way Medinah management wants to forestall their payday by raising $50 million just to grab another 5 points of the action. If they did have the ability to raise that kind of money from cash flow dividending it out would have 10 times the effect that another 5 points would bring.

If I were AMC, I would buy every Medinah share available up to a certain level and then “groom” Medinah for a takeout by a large Cu/Mo player. You stuff into Medinah whatever terms and conditions that 3rd party desires whether it be an option or whatever. If that 3rd party really likes the prognosis for the success of the 4 Nuoco properties they whisper to Medinah don’t sell AMC that 15% stake in Nuoco, keep it for us.

It seems to me that Masglas is spreading themselves pretty thin by going after those 9 First Quantum projects and developing them. I would think they’d love to get some major involved on the porphyry aspects of our properties. Because of the DISCONNECT, the explosivity/leverage in this situation is contained in this thing called the Medinah “share”. Nobody knows this better than AMC. The profits they could generate from the takeout of Medinah due to their own equity position in Medinah could fund their share of CAPEX for a long time. Would Masglas/AMC feel any remorse by swapping out Medinah for a major miner as co-shareholders in AMC? I think not.



I cannot wait for this investment to evolve into a mature discussion of the underlying value of the mountain and away from these nonsensical hypotheticals. There are WAY too many gullible people who have and are reading this board who have and are losing personal fortunes based on false hopes related to this type of commentary. Enough is enough.


We’re all waiting for news to be announced. One man’s speculation and opinion is only a possibility, nothing more. “Enough is enough” indeed, especially regarding insults of other posters. If you were 100% right all the time, John, we’d already be cashed out of this extremely wearisome mining play. I think we’ve all been gullible here with expectations of a fortune unfolding much quicker. All that occurred before AURYN arrived and can’t be changed. Time to move on and forward! No person’s opinion or insults is going to keep Masglas/AURYN from evolving this project into a mature investment. No poster has gotten the entire story right up until now. Perhaps we should all just take a rest and wait for AURYN to release news when AURYN (or Masglas) is ready. As the poster Volcan once advised:

The problem here is that in order for a mining company to start an open pit, and put money into it, it needs to do certain studies, and take the whole process by the book.

A real mining company, will not offer up front cash for this, but instead, sign a mining option, and go from there, as set milestones are accomplished.

If LDM, or MDMN, NA start looking seriously into this perspective, and take this whole operation to the big boys leagues, then all of the shareholders will be happy campers, specially if they are in business with a mid-tier mining company at least, with enough cash to do this or all the ADL, without any debt.

If we had all heeded this when it was originally posted it is likely many of us might have invested differently. I know I would have. The lost opportunity of having cash tied up in MDMN for far too many years, while other excellent mining plays abound, is grating on far too many nerves. The board would be enriched without the perpetual pessimism and personal attacks. This (and CDCH) is still a speculative play for me, until I see something that convinces me otherwise. (Hey DOC, where’d you park that tank!) :laughing:

Does anyone here know why AURYN announced:

An option agreement has been granted to MDMN to acquire an additional 5% of AURYN for US$50 million over a five year period commencing at contract signing.

I know I don’t!
It’s a puzzlement to me…


Yes. It’s not because there was some major in the wings giving hints.


Didn’t say it was, but thanks for the hint. Just hoping our BOD isn’t stupid enough to go after it by diluting shareholders with the remaining 1.5B shares, and then do a R/S like is occurring with CDCH. That would be really ugly!


They won’t go after it without it being worth more than $50 million in cash. It’s an exit event scenario in case they hit the motherlode and AMC ends up being worth more than $1B in 5 years.


Well, the next five years will pass much more quickly than the previous ten! :sunglasses:

It’s an exit event scenario in case they hit the motherlode and AMC ends up being worth more than $1B in 5 years.

That would actually be a very happy exit!


Gee… the dismal perspective of suffering another 5 years on this speculative investment is truly a nerves wrecking event.

Hopefully the elusive possibility of receiving dividends while enduring the wait will be the proverbial spoonful of sugar that helps the medicine go down in a most delightful way. :slight_smile:


I deleted some banter this morning. Posts containing ridiculous dumping (on the company or other people) or pumping will be deleted.

MDMN shareholders deserve better. is going to be known for better quality moving forward. If you want to post ridiculous speculation based on made up rumors or fantasy that doesn’t pass the smell test of real world business, please take it elsewhere.

If you want to take cheap pot shots at other posters or management, take it elsewhere.

If you want to discuss and debate real world possibilities and real world risks - this is the place.

Obviously the standard is going to be somewhat subjective, and we’ll allow plenty of latitude. But we now have real deal. Let’s at least one toe on the ground when we post and let’s not worry about the sky falling down either.


Anybody watching L2 can clearly see that there is heavy shorting going on.


You can only see that someone is either offering to buy or sell shares but nothing allows you to “clearly see” if any of those shares being offered at the ask or sold to the bid are truly short.


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Some positive news from Auryn is now imminent.
(This week)


Thanks for the update MG.


Should we look at Auryn or Masglas website?


Thanks Mike


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Is it good news or great news?