The Mining Play

MDMN - 2016-05-16 Weekly Discussion


FWIW, I got this from OTCMarkets on the 28th. I see it as a good thing, although I don’t know how often they will request updates to shares structure. Hopefully, at least once a month.

Dear OTCIQ Subscriber,

OTC Markets Group is excited to announce a new process intended to provide current, reliable company share data to investors. Accurate share information helps public companies build credibility with investors and brokers. We are now working directly with registered transfer agents to have their client’s share data, including the number of shares authorized and outstanding, sent to OTC Markets Group on a regular basis. Share data provided by transfer agents will be displayed alongside a “Verified” logo on, indicating that the information is reliable and trustworthy, and will be disseminated through OTC Markets Group’s data products along with other security-related information. Together, OTC Markets Group and transfer agents are helping issuers build trust by providing transparency.

To facilitate this program, OTC Markets Group has amended the OTCIQ Agreement to require OTCIQ users to authorize their transfer agent to provide share information to OTC Markets Group upon request. New section 7.9 of the OTCIQ Agreement reads, “The Company hereby authorizes its Transfer Agent, identified in the Company’s Profile on, to provide information related to the Company’s securities, including but not limited to, shares authorized, shares issued and outstanding, and share issuance history, directly to OTC Markets Group upon its request.” The amended OTCIQ Agreement is available online at (see Section 7.9).

If you determine that this amendment is unacceptable, you may terminate the OTCIQ Agreement in the manner set forth in Article 5 of the Agreement.

We look forward to working with you as we implement this exciting new feature.

If you have questions or concerns, please contact us at 212.896.4420 or


Corporate Services
OTC Markets Group
+1 (212) 896-4420


You mentioned that more preferred shares were just issued.

Exactly how many have been issued?

A check of the online financial reports shows just 9200 new preferred issued in 2016 as of March 31, 2016. Thanks.


Lol… You bounce around more than a super ball dropped off the empire state building, what the hell does that have to do with trade manipulation. Stay with the topic


When are the financials due to be out?


A Different Perspective

perspective - a particular attitude toward or way of regarding something; a point of view.

We all have one about MDMN, its management, its past, its present and its future. I’m going to share mine with you. It’s not necessarily the right one, but it has been arrived at thoughtfully. I’m not asking you to adopt my viewpoint, only to consider it. I don’t expect everyone to agree with the way I see things. We’re all different and come to this with different experiences and different needs and desires. It’s natural that we won’t see things the same way or want the same things out of it.

For the few who don’t know me, my name is Kevin (KMT). I have been a common shareholder in MDMN stock for almost 20 years and participated in one small private placement (over a decade ago if my recollection is correct.) During this time Medinah has gone through 3 or 4 names and ticker symbols. If you want to check my old posts out you can find them on Silicon Investor:

Mea Culpa

Over the last couple of weeks I’ve gone through some of the old threads. I need to apologize to some of you who I don’t even know. It’s hard to imagine being the person who wrote some of the things I did back then. But that was me. As I’ve looked back, I see three distinct seasons of my relationship to this investment.

The Early Days (Silicon Investor)

In the early days of this investment I was naive and green. This (actually NP Energy before Medinah) was the 2nd or 3rd stock I ever purchased. I was an intelligent individual, but ignorant and naive. A dangerous combination if you get my drift. I had no idea promoters could lie or exaggerate. I accepted what Dave Dirrico (the investor relations / promoter) and Les (the CEO) said as gospel. Those who disagreed with what they said were wrong or uninformed and were trying to destroy my investment. That led me to say a lot of things I regret. Things that were arrogant, hurtful, and rude. I’m sorry.

The Middle Years (Raging Bull)

After the first couple of years in Medinah I was crushed financially along with all the other stockholders who bought stock between $0.50 a share to $2.40 a share!!! Unfortunately, I still hadn’t learned my lesson. I continued to believe management and continued to buy stock.

Eventually it got to the point where even though I internally questioned management somewhat, I had no “choice” but to go along with it. I hoped the mountain was real. I hoped management was telling me the truth. Before long I was at a point where I had so much of my own ego and money invested that I was psychologically in denial. I lied to myself at least somewhat. I had to believe in the mountain and to some extent defend management. The alternative would have been too damaging personally and financially (or so I thought).

Although we can no longer access the posts from Raging Bull or from the early days of, without question I said some boneheaded and hurtful things then as well. If you were one of the objects of my denial-filled disdain, I apologize.

The Later Years (The Mining Play)

About 8 years ago I shook off my denial and victim mentality. I didn’t sell my stock. Nor did I buy much more. I didn’t believe management, but I did believe in the mountain. My posts went to supporting the mountain and an openness to question management and hope for the best in them but willing to realize the worst in them. I figured if I was going to lose it all, at least I’d do it with integrity.

I would regularly call management and ask hard and difficult questions. I would send emails to them calling them out when I found them stretching things. I became a thorn in their side, so to speak. I don’t think they were very happy with me.

I was still emotionally tied to my investment. After all, I invested hundreds of thousands of dollars and countless hours in this since 1997. But I was determined to no longer be dishonest with myself or others. Nor would I assume the worst about every poster who questioned management or disagreed with me or other shareholders. That doesn’t mean I was happy go lucky about things. I wrestled with the fear of losing everything quite often. I knew the kind of people who were in charge of things and I was never truly comfortable with my investment.

During the Ulander pump days I thought we had arrived. I thought the deal was real. That hurt a lot. Having a 7 fold return and enough money to retire and seeing it disappear – ouch. It hurt most because by this time I knew enough to know the property was legitimate and the stock could have been worth a lot more than it was if management played it straight. I let my guard down and trusted management and it cost me big time.

Obviously many of you were and are in the same boat. I’m sorry for us all. But here we still are, “in this together” as they say . . . and it isn’t over yet!


That brings us to where we are today. For a long time I’ve been a big advocate of changing management and putting someone competent in charge of developing the project and managing the company. Thankfully that has happened. AURYN is fully in control of everything that happens on the ADL. In addition, for all practical purpose former management has been removed from having ANY influence over the outcome of this endeavor!

Moving Forward with a New Perspective

With all that said I’d like to offer where I think we are headed. I do this with great reservation. Please realize and acknowledge the following:

  • Don’t read into anything I’m writing. Take it at face value.
  • I’m not in control of the future.
  • My comments are not based on any special knowledge of secret plans regarding future events.
  • Although I am not the person I was in the early days, it doesn’t mean I’m right.
  • The people at the helm and working the ADL aren’t clairvoyant or perfect. Mistakes will be made along the way.

Maurizio Cordova

As you know, I have met with Maurizio in person. In addition I have emailed him questions from time to time and have spoken with him on the phone several times. He is a straight forward, no-nonsense businessman. Undoubtedly you have read my write-up on the I stand by it. We are in good hands.

The Property and AMC

The Property is legit as well. The findings to date speak for themselves and more is coming as AMC continues to explore and exploit. Maurizio has put together a well qualified team. They are doing this the right way and we will all be the beneficiaries of it.

The New Medinah

As far as I can tell, AMC friendlies are more or less leading Medinah. The two new board members have deep ties to AMC. But that doesn’t eliminate their fiduciary responsibility to Medinah shareholders. I believe they are keenly aware of that and I’m confident that they will conduct their duties appropriately.

MDMN Shareholder’s Future

This is my perspective today. I believe our mountain is absolutely terrific. I believe that the ADL is going to prove out to be a world class project. I believe that MASGLAS, Maurizio, and the rest of the AMC team think this as well.

I believe MASGLAS and Maurizio are people of unusual integrity in a world of pretenders. I don’t think they have any interest in harming Medinah shareholders. In fact, I believe they are us, i.e. they own more than 35% of the stock of Medinah and 65% of the mountain in AMC. They will not try to buy us out cheaply and take advantage of the poor reputation that Medinah has or our own misinformed opinions. Nor will they allow themselves to be bought out cheaply by some other major.

They are long term thinkers with a belief in the project and a solid plan for developing it as expeditiously as possible. They are aware of the need for cashflow and have no interest in diluting themselves or us. Again, they are us to the tune of almost 500 million shares via friends and family.

Our financial success as Medinah shareholders and AMC’s success will rise or fall with the successful development of the ADL. If the mountain delivers, I am certain that MDMN shareholders will get their appropriate share, one way or another.

I’m no longer worried about company risk. Has former management done a poor job and unduly diluted us? Yes. But what has been done is done. If AMC is able to undo some of it, I believe they will. If they cannot, they won’t. I trust that process (scrutinizing as they said in the news release) to them.

More importantly, I trust the mountain to them. They are moving forward and each day we move closer to production. Starting late summer / early fall the beginnings of real cash flow will come into AMC. Eventually there will be enough cash flow for some of it to make its way to Medinah shareholders. That is the day we’re all looking forward to!!!

In the meantime, I am not going to get upset about the stock price. There is nothing I can do about it. I’m not going to tell AMC what they should or shouldn’t do. I’m going to accept that they are on my side of the ledger. The only corrective for all the former failures is successful production along with AMC and the new MDMN executing honestly, ethically, and forthrightly. Eventually people will begin to realize that this is not the same company that told story after story about one deal or the other and never lived up to their billing.

You may be right, I may be crazy

As I said previously, you don’t have to agree with my perspective. After all, I was once stupid enough to put my confidence in the team that diluted me from 28 million shares to 1.3 billion. You have a right to question my sanity.

All I can say is that this investment has changed me. I’m not the same person I was in 1997. Because of my experiences, I believe I’m a far better judge of character, and I’m a far better person of character. Life does that to you. It makes you bitter or better based on your response.

If you got this far, thanks for reading. I’m honored that you took the time to consider my thoughts.

Many blessings to you all . . . and a great amount of respect to you long-timers who have lived through your own dreams and nightmares over the years with MDMN and have allowed it to change you for the better.


Wizard (KMT)


The following is my opinion. It is solely that. I have no knowledge of this and I have never discussed this with anyone from AMC or MDMN. So please read it as just my opinion.

I read the news release that the new BOD is scrutinizing things. I don’t think many serious investors equate what Medinah submits via the OTC Market as financials. I would not be surprised if the next round of financials are delayed until the new BOD has done at least an initial level of scrutiny and can understand and report something they have confidence in.

Again, that’s my opinion only.


I haven’t seen anything beyond that but I haven’t gotten any clarity on the conversion rate. I do take some comfort in AMC’s update re: a review of the financials and I am encouraged on the possibility of shares being returned if a proper audit is conducted. I have less confidence for a clawback b/c JJ and Les are most likely broke now that their personal MDMN bank account is tapped out.


It occurred to me that to make a complete new start…Medinah should consider changing its name at the next AGM. Perhaps we here on MP could suggest a new name that most endorse? Vote on a list of names?

Anybody have a good name in mind?


How about Monica. Saint Monica is the Patron Saint of patience, wives, mothers, and victims of abuse.


Alto Minerals?


Lipangue Minerals?


Please get me out with a profit minerals?


Just a reminder of what the trenching here looks like from ground level. From the AURYN Projects deck:

At least three merlin veins were recognized.
Merlin 1 is the southern extension of the Caren Mine .
Trenching discovered the structural system of Merlin 1 vein up to 1.8 km to the SE.

Sepro’s Falcon SB Concentrator would be highly effective on these surface gold deposits, and not just the Fortuna’s anticipated open pit once permitting allows. The extensive metallurgical tests conducted in the trenching that I had referred to in an earlier post actually pertained specifically to this area. Fortuna trenching results were similarly obtained. See the Projects deck for sample results.

Metallurgical tests conducted at laboratories in Perú returned an average gold recovery greater than 90%. Test conditions confirmed the best recovery method entails use of a Falcon gravimetric system processing previously concentrated ore.

I interpret the above testing was performed primarily on the trenches and not the underground Caren Mine where the cutoff grade is 15 g/t. To produce the 5,000 troy ounces of gold before year’s end AURYN would need to obtain about 1/3 of an ounce Au per ton for three consecutive months at the presently permitted level of 5,000 tons/month. This rough estimate also assumes the 5,000 tons each month is not concentrated and will be trucked directly to the refinery.


This post was flagged by the community and is temporarily hidden.


This post was flagged by the community and is temporarily hidden.


First they told us that they, with friends, had purchased 150 M shares. Then throughout this ordeal it looks like AMC/MASGLAS was active in attempting to gain control and ownership of 100’s of millions of other shares from JJ. Eventually they were successful in doing so. Along the way they told everyone that they were trying to buy them from JJ and friends, then they told us they were unsuccessful in buying them, then they came back and attempted to buy them again, then when they findly were successful in buying them and they provided a public release with the total share count. Do you really believe that while in the middle of trying to purchase those shares MASGLAS should have made a public announcement calling into question what the owner (JJ and/or son) may or maynot have done with those shares?

Is it your intention to continue to conjure up any negative post you can come up with just to try and get some others here to feel as dissatisfied as you apparantly feel about being a Medinah shareholder?

AMC has to make business decisions that will grow the mining operation in a way that will maximize and increase production within a budget that will allow the eventual maximum profit for all the partners. It sounds like you are suggesting that AMC should abandon that approach, disregard our other partners who own 75% of AMC, and concentrat on transferring working production capital to Medinah so Medinah can issue a dividend to it’s shareholders. Or, am I wrong and you have some other grand plan for AMC to come up with the money for dividends?


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This post was flagged by the community and is temporarily hidden.


I must have missed something. Your complaint was that, “There is no sense of urgency for them to prioritize mdmn’s shareprice.” This statement would seam to indicate that you expect some sense of urgency for them to distribute dividends. Yet, I’m not under the impression that any cash is currently being raked in from those locations so how do they continue to do something that they are not close to starting to do yet?

So, “before even thinking about drilling the PN” we are to understand that you are suggesting that AMC payout enough of the production from the Merlin (that is months away from production) an amount sufficient for Medinah to use our 25% cut to pay out at least two different dividends to shareholders? How much in total do you suggest that AMC dividend out to the partners before “thinking about drilling the PN”?

How many of Medinah’s percentage ownership points of AMC do you plan on selling to finance a huge drill program? Or do you think Masglas will sell some of their 65% and use those funds to finance a hugh drill program without looking to Medinah to offer up their percentage match? I don’t think so but maybe you can explain to me how that works.

I know that we have been told that we have good loan terms available to continue mining development and work toward production. That will allow AMC to work toward production and pay back loans without selling down any ownership percentage. I sounds to me like you are talking about selling part of the total AMC ownership package and diluting Medinahs ownership for an early dividend that would be based on a reduced percentage of ownership. If I’m wrong, please correct me and explain how this works to sell shares on the TSX without diluting our ownership.

I somehow don’t think you have really thought this through.

You might wish to reconsider that thought.

Consider that the above might best be accomplished while AMC accesses priorities and manages to budget which is what I believe they have told us they plan on doing.


I was thinking about:

Merlin Mining
Merlin Minerals
Merlin Resources
Merlin Gold (or MG for short! :slight_smile: )
Merlin Lode Mining

Might make sense to promote the new name of the mine.