The Mining Play

Medinah/Auryn - 2018 Q3 General Discussion


#304

For most here to make your money back an then some Auryn would have to be trading over 3.00. It seems like a long haul.


#305

It is a long haul! It is coming together though. Transparency will remain a challenge. AURYN’s reputation will need to be earned moving forward which will depend on transparency and results.


#306

It does bring in a little money I would assume since they are getting a management fee!

AURYN will provide logistical support to Hochschild’s work on the project and will receive a net management fee for doing so

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#307

Would someone please comment on how this news would (or would not) appreciate MDMN ? Thank you.


#308

In December our stock will most likely be exchange for Auryn Mining stock and MDMN presently owns about 25% of Auryn.


#309

Thanks Karl. So am I right to assume that both CDCH and MDMN should appreciate to some extent with this good news? (I am not asking an arbitrage question; rather just in general appreciate of both stocks, until converted.)


#310

Yes but you must realized there is only 5% of the 70M shares of CDCH stock that is free trading, therefore I would bet MDMN gets more action simply because there are penalty of MDMN stock that is free trading. Like already stated it will most likely be a bumpy ride.


#311

Thanks. I don’t mind bumps; its the freefall that worries me!

g


#312

$3 pps for Auryn would be equal to about 1.7 cents Mdmn. I would think most people need quite a bit more for break even which is possible longer term if the mountain produces!


#313

Karl,

see my earlier comments. How is Auryn Mining Corp providing ‘logistical support’ when they have no paid employees and have no money to pay any?

Pretty obviously it is Auryn Mining Chile that is providing ‘logistical support’ because they have money and people in Chile.

Yes the two share management personnel. But if the ‘logistical support’ is credited to Auryn Mining Corp by Auryn mining Chile then it is only by charity or by some unknown agreement or simply because it is in Auryn Mining Chile’s self-interest to get this whole thing kicked off and it’s just easier to pay for everything right now. The same comment could be made re. the tax/fees that need to be paid on the properties which Auryn Mining Corp owns but which it has no means to pay. Apparently Auryn Mining Chile is taking care of this too?

My point is really just twofold:

  1. the relationship between Auryn Mining Chile and Auryn Mining Corp (CDCHD/AUMC), outside of share ownership remains unclear and thus the mechanism for the Caren to get funding remains unclear.

  2. I am pretty confident management (Maurizio etc.) have a plan to get to production. We just don’t know the details yet.

I am just trying to keep these organizational details in mind as we think through how this JV’s etc. are working.


#314

Don’t rack your brains too hard. It’s complicated for now because of the moving parts and how things were done to legally satisfy requirements in multiple countries and regulatory bodies while treating MDMN, CDCH, and AMC SpA shareholders fairly. Give it five to six months, it will be much clearer. All you will have to think about is AUMC, imo.


#315

Hey Rich can you repost what Volcan said regarding the LDM


#316

These are the posts I saved from the poster “Volcan”

Quick answer.
Yes I am invested in Volcan.
I have been in ADL several times ( actually I’m kindly asking my pics to be removed from the website, that is Medinah’s website).
I believe ADL could be the last WCD SA.
Mark it. It comes from a real miner.

FYI. I do happen to have people in the mountain.
No Mr. Smith in the hood yet.
I will update, for free, when something goes on the mountain.
Cheers to all.

My post got deleted on Friday, cause I am biased. But all fellow shareholders, one way or the other have agreed on what I had Sid.The ADL is probably the last world class deposit ( book definition) in SA. Yet if you don’t loose it before a bunch of worthless stock, you still have a big shot score big.
Just have to be the proper way.

I will like to remind all of the fellow shareholders, that LDM initiated this process to get the Paul Jones suggested shaft sink plan done.
In simple and plain language invest around 1 million dollars to try to get out of the ground, around 3,700 ounces of gold.
It sounds like a giveaway to the LDM investors, but in mining, risk is always a huge factor, and this approach, it’s a reasonable one, especially with the terms of the FCI.
When they start cleaning the area to hit the two drill holes, they found a skarn, with huge dimensions, along with multiple veins and veinlets.
If this skarn was to be developed, then they need to pursue an open pit, and not follow the Paul Jones initiative.
Mineral values in a skarn are low, but compensated by the huge volume of the mineralization. Truck shipments to Enami, for processing are impossible to do, first because the value of the shipment will be less than the shipping costs, and second, Enami is not going to take it, because of the low grades.
Open pit, will require a completely different approach, a mill, a processing plant, etc. We are talking about 30 million dollars investment, to kick start production, in about 18 to 24 months. For this, LDM, or better yet MDMN,NA with the other 9 claims, needs, not only a partner with financial resources, but with mining expertise, in order to economically develop an open pit.
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.
It will reflect in the sp, since people in the business will know that the partner is a respectful established mining company.
Please don’t loose sight of this, with the original Paul Jones plan; the cash flow is not enough to start an open pit. It will indeed give a few million dollars profit, but it would not create the necessary cash flow for an open pit. And this is a fact.


#317

I always liked that post. How long ago was that originally posted? 2012??


#318

great start! good to hear we are finally on the right path onward and upward


#319

The document I saved it to is dated 11/21/2015, but that is likely not accurate. The post does precede that date for sure, I just don’t know if it is days or years. It seems like 2015 is much too recent for this post.


#320

I was finishing up professional school when Volcan was posting, so 2012-2013 I believe.


#321

IF ‘the anticipated a conversion rate of “0.558 shares of CDCH for each share of MDMN’ is correct, then
the current rate is 0.00558 shares of CDCHD for each share of MDMN (after the 1 for 100 consolidation).

Given the recent CDCHD share price of $0.60, Medinah should be trading at $0.003348 given the recent CDCHD share price of $0.60.

It’s currently in a range of $0.0041 to $0.0046 which is 22 - 37% higher than the $0.003348.

My bet is something has to give, CDCHD higher or MDMN lower. Without any discernible volume for CDCHD though, it’s a tough call.

And given that almost all the volume has been at or around $0.48, Medinah should be trading at $0.002678 which is 53 - 72% higher


#322

I understand the desire to create a formula and the desire for some to use it as an opportunity to arbitrage. However, I don’t think it will be able to be done because of the capital structure of each. You have two crazy extremes.

MDMN has almost 3B shares most of which is easily tradable and in weaker hands.

AUMC (CDCHD) has 70 million shares, only 3.5m of which are tradable and most of which are in stronger hands.

Right now it’s bid of $0.74. So 0.74*0.00558 = $.0041. MDMN bid is $0.041.


#323

The JV announcement is NOT on the HOCHSCHILD MINING website ! Small potatoes ???