MDMN - 2016-05-16 Weekly Discussion

Weekly Discussion
659

A little surprised that you can’t see the longer term planning that MASGLAS/AURYN is engaged in, and the importance of a circular ownership model. MASGLAS is most definitely a long term strategic planner behind AURYN’s mining model. Do you think AURYN is doing all this preliminary work for just 5% of ownership? What sense does it make for MASGLAS to reap 65% of all discoveries and potential money flow? Yes initially all early exploitation profits will go into proving up AURYN’s property to give it some valuation.

As we progress toward full scale production AURYN will provide updates regarding costs, mine life, and reserves.

At a certain point an NPV based on proven an inferred reserves will be announced. [quote=“cornhuskergold, post:645, topic:1280”]
All of these things, while not decisive, would lend themselves nicely to the theory that Masglas is positioning / prepping for going public when markets and data permits.
[/quote]

Contrary to CHG’s proposed theory, I think at this point, AURYN could go public rather than MASGLAS. CHG is correct that:

Things like production projections, “costs, mine life, and reserves” are the data by which public mining companies are valued. All of these things, while not decisive, would lend themselves nicely to the theory that Masglas is positioning / prepping for going public when markets and data permits.

Why would they do this? I would surmise to sell off some of the deposits to mid-tiers more experienced in exploiting something like Moly, while AURYN/MASGLAS will stay focused on gold/silver and copper deposits. After sale for cash of a proven Moly deposit, there would be a cash reserve in AURYN’s account (not MASGLAS - that would still be private). I would think timing for AURYN going public occurs before selling off any assets that it is less interested in developing. A large dividend after a sale of assets would definitely benefit MASGLAS most, and MDMN (a holding company) would receive a nice dividend. MASGLAS would have a great amount of cash to develop it’s 100% owned other properties. $50M more cash would buy another 5% of AURYN for Medinah. Where would this money come from? I think a TO for MDMN’s 28% of AURYN will be accepted before the 5 year option, and MDMN will end up distributing a large dividend, after exercising it’s option for 5% of AURYN for a long term benefit for all shareholders.

660

This is the part I do not understand. If the only way to invest in Masglas/Auryn is by buying Medinah shares…Then why is there not more buying, ESPECIALLY at these levels? Too soon. Still unknown. And why would ANYONE be selling, except to perhaps pay bills, when the future looks so bright, and we are all down at least 50%. Please explain…Anyone…

661

Given the history and dilution of all other public companies associated with LP and JJ and the twenty year saga of MDMN, I can understand if investors are from the show me state. Also, MDMN only owns 25% of AMC. At this point it’s not at all clear to the public how much that is worth. I’m not sure what you’re expecting.

For example, how much do you think AMC is worth? Put a fundamental value on it. What should MDMN be trading based on what is TRULY known? And what are the risk factors? What premium would you expect for them?

Go ahead and make the case for it. Why do you fundamentally think this is a great buy?

By the way, I do think it is a good buy. But I have a better understanding than most. I think unless you’re friends and family and have a lot of trust, it’s difficult to make a convincing argument in favor of a screaming buy.

6 Likes
662

Well this is the problem they have not released all the important info to truly reflect our SP. Some here say the only way we will see share appreciation is by production, IVS as some mentioned is trading at .33 and they have no production but their stock keeps climbing. They have released a 43-101 technical report but no mineral reserves. My opinion is that shareholders have been burned in the past with MDMN and don’t want the same again so they are on the sidelines I truly believe that MDMN is worth more than .014 and it’s to bad that Masglas/Auryn are not releasing any of their assets, cash, etc… to prove me right.

We gave all our properties for 25% of a company that shareholders know nothing about.

2 Likes
663

Is it possible to factor in what we DO know about the mountain? Plus the FACT that they have invested about 10 million dollars into the property. And that they seem to have UNLIMITED funds to continue until production starts paying for all future expenses. What is there NOT to like? Which once again brings me back to the confusion of the share price. Don’t get me wrong. I am not saying that we should be at .10. But .015 is ABSOLUTELY ridiculous!!!

1 Like
664

Quite true. There is likely a great deal of strategically sensitive information that was required to be reported to Sernageomin under Chile’s new mining laws. All companies not complying completely face stiff punitive fines. This strategically sensitive information was also protected by the same law, and may have included information pertaining to surface sampling, exploration drilling, district and local geological maps, geochemical and geophysical surveys, mineralogical and petrographic studies, mineral dating and satellite images not released to the public. How do you think MASGLAS/AURYN was stealthy enough to acquire and consolidate all the mining claims they deemed essential?
Note a previous post that said:

Uribe noted that many companies are concerned about what kind of information Sernageomin will require them to hand over, but he sought to calm fears that the rules will cover strategically sensitive information.
“The idea is not to intrude on confidential company data,” says Uribe. Sernageomin’s aim is to gather data and use it properly, protecting the work of exploration companies, while allowing the state to understand its natural resources.
… The information will be published on two online platforms. Companies will have to fill in a form on Sigex (from the Spanish initials for Geological Exploration Information System) about their exploration projects. Only users will only able to see information which applies to their projects. A second platform Geomin will contain publicly available information derived from the data provided to Sigex by companies, together with maps and studies produced by Sernageomin.
see pg 8
http://cexr.cl/wp-content/uploads/2015/09/CER30-ENG-FIN.pdf

I expect AURYN will keep it’s word regarding future releases of information and consistent with the new mining laws.

665

Hulk hard to compare the two or even use as a reference. There’s no comparison when it comes to share structure, and the backing they have. Sprott and McEwen to just name two…kinda ying and yang

1 Like
666

Like I said, make your case. How well do you know the sector? How well do you know MDMN? How well do you know AMC?

Pretend I’m a mining investor and I’m looking to invest in the sector. All I know about MDMN is what I find on OTC Markets and their web page – including all their old news releases and shareholder updates going back to 2005. All I know about AMC is their web page.

I read this on MDMN’s site . . .

Authorized Shares

3,000,000,000 Common shares as of March 31, 2016
100,000,000 Class C Preferred shares as of March 31, 2016

Outstanding Shares

1,349,103,000 Common as of March 31, 2016
3,209,500 Preferred as of March 31, 2016

Convince me that this company is worth more than $20 million today and a lot more than that tomorrow. Convince me I can trust the leadership team to increase shareholder equity through the use of another 1.5B common shares and / or 96,000,000 preferred.

Make your pitch.

My opinion . . . we will be worth much more than that, but today isn’t the day to make that claim to new investors. Not yet. Give it a few months though and it will be a different story.

3 Likes
668

No point till you have a story to tell! Wait for production, that’s the type of stuff investors are looking for.

3 Likes
669

Bravo!! That’s one of the most sensible and succinct statements made so far to answer the worried and distressed shareholder.

The right thing to do is what Wiz just said:

My opinion . . . we will be worth much more than that, but today isn’t the day to make that claim to new investors. Not yet. Give it a few months though and it will be a different story.

Everything else is borderline baloney.

1 Like
672

But look at what their share price would be if they had Medinahs Outstanding shares issued compared to their market current cap.

ivs market cap $14,270,000 divided by Medinahs issued shares 1,350,000,000 would equal a current share price of 0.01057 cents. apples and pecans. not even oranges.

673

Even though they had a share consolidation it still doesn’t stack up to our share structure.

675

And I agree that at the right time I too am looking forward to seeing some good promotion but until the time is right there is no use in expending funds just to see the SP waffle a little for the benifit of flippers.

5 Likes
681

Not sure if this page on AURYN’s site has been updated. My scanner has said it has.

	ABOUT US

AURYN Mining Chile SpA (AURYN) is a privately owned company presently exploring the promising Altos de Lipangue historical mining district located approximately 30 kilometers northwest of Santiago, Chile.

AURYN now owns and controls over 10,500 hectares of mining claims at the Altos de Lipangue Area.
aurynmining.com/acquisition-of-altos-de-lipangue-mining-claims/

AURYN shareholders are the following:
MASGLAS, 65%
Medinah Minerals Inc., 25%
Cerro Dorado Inc., 5%
Private individuals, 5%

MASGLAS, www.masglas.com our parent company, directly owns over 20% of common stock of Medinah Minerals Inc. (MDMN OTCBB-Pink) Completion of Shares Acquisition - AURYN Mining Chile

AURYN, has an interest equal to or greater than 85% in the following mining companies: NOUCO Mining Chile and Minera Mantos Azules Chile.

These companies hold mining claims within the Altos de Lipangue mining district. Each one of these companies hold exploitation permits
.
The property has excellent infrastructure including an upgraded access road connected to the Panamericana Norte highway.

Our focus will initially be on the exploitation of the recently discovered Caren-Merlin high grade gold veins, as well as the historic Fortuna de Lampa mine site. Mine site preparation at the Caren-Merlin area is set to commence the second week of June, 2016, and will last approximately two months. Production will begin immediately thereafter in compliance with applicable regulations. We are confident that we will attain out production goal of 5,000 troy ounces of gold for 2016.

The expected production for 2017 is conservatively set to be over 25,000 troy ounces of gold. After the first full producing quarter at the maximum allowed capability we will be able to forecast a more precise production estimate for 2017.

AURYN is also preparing the required mining application in order to obtain the required permitting for an open pit at the Fortuna de Lampa historical mine site.

After permitting is obtained, the mine preparation will follow, and production is expected to start during 2017. Actual production from this site has not been taken into account for our preliminary 2017 production estimate. We will update as soon as we have this data available.

AURYN forecasts a positive cash flow from these activities which will be reinvested in exploration on the Altos de Lipangue targets that have been defined by our geology experts. Drilling will be scheduled on the
remaining four identified high grade gold veins at the Caren-Merlin site.

Regarding the Pegaso Nero (Copper-Moly area), AURYN is looking forward to reaching an agreement with the surface rights owners in the near future so that we can prepare the area for a campaign of Induced Polarization. This will help us clearly define the drilling targets.

Financing for operations will continue to be secured by MASGLAS until AURYN becomes cash flow positive. The terms of the financing are extremely favorable for AURYN. Any required cash is interest free until
July 2017. After that interest will be LIBOR plus 4%, and debt repayment will occur with a portion of the revenue generated by the early production. Capitalization and conservative money management is a key pillar of the AURYN business plan.

Rod

1 Like
682

“Not sure if this page on AURYN’s site has been updated. My scanner has said it has.”

“AURYN, has an interest equal to or greater than 85% in the following mining companies: NOUCO Mining Chile and Minera Mantos Azules Chile.”

I believe before it read “Auryn has an 85%…”. Maybe something changed with last week’s meetings.