Hulk,
This is a foreshadowing of where AURYN expects to see money flow come from early exploitation by putting it on its “front page” ABOUT US. AURYN may be preparing to let those paying attention know that this is an area that will become very newsworthy in future months. It is a excerpt from the media release months ago that reads:
Auryn Mining Chile (private)
Has consolidated ownership over the Altos De Lipangue project in the Metropolitan Region with three acquisitions. The company has acquired 85% of the outstanding shares of NUOCO (LDM), effectively exercising the corresponding mining operation agreement, and 100% of the Fortuna and Lonco Millareupu mining properties that cover the Fortuna de Lampa mine. Auryn also acquired Minera Mantos Azules Chile, which holds permits to produce up to 5,000tpm from high-grade veins from the Caren mine on the site. Executive Chairman Maurizio Cordova revealed that a team of mining engineers is travelling to Santiago in February to begin preparation and design work for starting production. Recent gravimetric fire assay results confirmed results of up to 124g/t Au on samples from the Merlin I vein in the Caren mine sector. “These important results in precious and base metals encourage the company to advance in the early production evaluation opportunity,” Auryn said. Following these recent acquisitions, Auryn has one pending option agreement with Medinah Mining Chile. “Adding over 3,000 hectares of ownership to the AURYN Mining Chile SpA portfolio is an exciting step forward for AMC…” We expect it to be cash flow positive that will supplement AMCs exploration efforts and ultimate exercise of the JV Mining Option Agreement with MMC,” said Cordova.
I think it reads the same as before. “Azules” is Masglas/Maurizio’s subco that owns the Caren property group which holds the “Caren/Merlin Mine”. When AMC bought the founders of Nuoco’s 85% stake, Medinah opted not to sell their 15% interest. This complicates the ownership of the mining district a bit.
The Nuoco concessions make up about one fourth of the 10,500 ha mining district. Therefore Medinah owns a 25% equity stake in AMC which is the outright owner of 100% of 3/4 ths of the mining district and an 85% owner (100% nominally) of the Nuoco fourth. Medinah thus has a 36.25% stake in the Nuoco fourth.
When you combine it together, Medinah basically has the equivalent of a 28% stake in the entire mining district but a Medinah shareholder is secretly rooting for success especially at the Nuoco group. At the time of the ADL sale, the Caren property was the only property permitted for production. Recently, the Nuoco group of concessions got their initial production permit for 5,000 tonnes per month. Medinah’s knowing that this permit was about to land might have been the reason they held their 15% of the Nuoco properties out of the deal. Although nobody seems to be following it very close, the NPV of Medinah’s 15% Nuoco stake should have had a nice pop in value when the permit landed. This is because PERMITTING RISKS especially related to inordinately longs stalls in receiving a production permit are a huge RISK in mining.
Once the initial production permit lands then the mining authorities will increase the alotted amount of production through time if the operator behaves himself in an environmentally responsible fashion. The high gold recovery rate via simple gravimetric methodologies (basically a centrifuge) recently announced is a very big deal from a PERMITTING ALLOWANCE point of view for two reasons. Firstly, because such a high percentage of the gold is recoverable without any of the chemicals that the environmental/permitting authorities worry about. Secondly, if you can CONCENTRATE (“beneficiate”) the ore on site before shipping it down the hill the initial 5,000 tonne per month rate becomes a lot higher in terms of “metal shipped/profits earned” because the 5,000 TPM refers to what is in the trucks and not in the initial ore removed from the adit.
With the production permit in place at the Nuoco, Medinah shareholders would naturally hope that exploiting the early production possibilities at the Nuoco will become a high priority. That 15% Nuoco stake is a bit of an “outlier”. If somebody comes along a wants a piece of the action, that asset might represent something of interest to an investor. I would assume, however, that AMC retains a right of first refusal to match any bid on that asset.
I think Medinah’s “package of assets” i.e. the 25% AMC and 36.25% Nuoco stakes are going to benefit from activities like Masglas’s and AMC’s sponsorship of things like the upcoming Mining Congress down in Santiago. If somebody wants a piece of the action, those Medinah stakes seem to stand out fairly prominently. I can’t see AMC going any lower than the 65% stake they currently own.
If you look at the Masglas assets, Masglas/AMC’s only owning 65% of the ADL action sits out like a sore thumb when you notice that they own 100% of their other 11 assets. But Medinah knows that the NPV of the ADL could go nuts at any time if, for example, the earnings at the Caren/Merlin Mine are greater than people thought or a couple of nice intersections into the Cu/Mo porphyry are obtained. So Medinah isn’t going to be in too much of a hurry to sell unless an offer was deemed to be more than adequate and worthy of presenting to the shareholders at an AGM.
Medinah also knows that cash flow from the ADL’s early production opportunities could act as a catalyst to propel the rapid development of all of the ADL not that Masglas/AMC, with their vast financial resources, couldn’t write the checks themselves without that cash flow. I wouldn’t know how to handicap whether an offer from AMC or a major might be more likely.
The supply and demand mechanics of somebody being interested in Medinah’s 25% AMC stake and/or 36.25% in the Nuoco concessions suggest to me something happening sooner rather than later. The established majors can’t mimick the explosive growth profile of properties just going into production as adjacent areas are getting their initial production permitting into place. The plateauing out process down the road is pretty much inevitable but the robust growth profile can be pretty fun in the interim. The majors need to ACQUIRE these dynamic growth profiles and there is currently not a lot of “supply” out there due to the explorers having a tough time over the last few years in getting funded and the majors not doing much of their own exploring due to the inherent RISK. The “perfect fit” might be with one of the large Cu/Mo players.
I would like to see an AURYN update that states EXACTLY what they OWN and EXACTLY what MDMN OWNS property wise, percentage wise as per company ownership wise, and specifically property ownership wise, and specifically what voting power each entity has. Until we know EXACTLY what MDMN owns and what AURYN exactly owns and EXACTLY what any other entity owns then no one will invest. Any insight would be greatly appreciated if specifically proven. If contract!
Seems like an old contract excluded MDMN from Los amigos claims for gold is that still intact. I’m confused
Please assist in MDMN true assets and ownership and cdch if possible and nper as I have stock in all the above. Thanks
I would like to see an AURYN update that states EXACTLY what they OWN and EXACTLY what MDMN OWNS property wise
[/quote] With a little exception (Nuoco) - Auryn owns everything that Medinah used to be involved in. Medinah owns no claims (CDCH owns none either). Its been moving fast but not that fast. Medinah now owns 25% of Auryn and CDCH owns 5%. It’s a lot simpler now - its been put into one big pot.
In 2014 one of the MASGLAS Holding’s company AURYN Mining Chile SpA, optioned the area through three different owner’s Medinah Minerals, Nuoco and Cerro Dorado, making a solid block of properties in this promising district on Coastal Cordillera of central Chile. Subsequently, AURYN continued with exploration efforts completed mapping, sampling and drilling especially in Brecha Lipangue, Pegaso Nero and Caren – Merlin – Fortuna targets. Finally, in late 2015, and early 2016 AURYN exercised the three options, and took control over 100% of Altos de Lipangue.
You can kiss off NPER as “someone” sold the assets of approximately 17m shares and left you and me holding an empty bag!
I’m not in the least bit happy about it either!
Obviously a lot of good things will be happening with our investment prior to then. Rather that whine/complain about the current near decade low share price, I suggest take advantage of it and buy every share one can reasonably afford as the future for Medinah has never been better or more obvious for success than it is now.