The Mining Play

Medinah/Auryn - 2018 Q3 General Discussion

Hulkster,
So what you are envisioning is a variation of my circular ownership model, for the time being. Eventually, AUMC shares would be returned to MDMN shareholders pro rata via a dividend. As of the most recent Q2 Medinah has a 24.848% equity interest in AURYN Mining Chile, Spa, a private company. Medinah also has approximately 96K of AURYN Mining Corporation which would be it’s corporate treasury shares to run on for a while. An additional 195.5K shares of AUMC are expected to be converted from the settlement with Les in Q3, 2018.

A dividend of AUMC shares would return greater ownership to AURYN (the private company) of the publicly trading company proportional to their percentage ownership of Medinah. An announcement for an ex-dividend date and distribution date would precede distribution. Medinah would only exist then as a shell at that point. There would be no intrinsic value unless there was an R/S to provide treasury shares and additional assets acquired for value and growth. How do you envision keeping Medinah as a viable company trading on the OTC? It would be an empty shell after distribution of the AUMC share dividend?

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I’m just glad Auryn and friends own millions of shares of Medinah. I’m sure their not “writing this investment off” and are looking for an ROI just like us. I’ll just ride their coattails and see what happens in the coming months.

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Well it’s going to be a long haul before we break even or make a buck.

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Lunch order.

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Mike, today at 3:27 pm AURYN Mining Corp tweeted the first picture Kevin posted and the caption…
“Representatives from Hochschild Mining have been visiting the LDM project over the last few days wrapping up their due diligence and planning their work”

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Not a great strategy thus far…

Everyone who decides to hold their position needs to focus on where the company is right now…it doesn’t matter if you are down 95% on your position or if you are up 100% after buying CDCH at 65 cents a few weeks ago. You are invested in a company that currently trades with a $100M market cap. Hats off to those who recognized the value of this assets many eons ago. This is NOT a small valuation given that we are currently in one of the worst bear markets in precious metals history.

Example: I’m invested in a company that is full funded through production, trading at twice their current cash levels, forecasted to produce 90koz+ next year, run by a guy who’s had 4 billion $+ exits, currently trading at a $50M market cap. There are many dozens of these types of companies (10 bagger plus potential) littering the TSX.

Despite an atrociously performing stock resulting from an atrocious management team and endless dilution to the common shareholder the underlying asset of CDCH/MDMN is still shining (does’t do much good for our collective investment but some can still say “I was right about the rocks.” )

Measure your confidence for the upside vs. downside and buy/sell/hold regardless of how much you’ve made or, more realistically loss. There’s way too much uncertainty to treat this as anything but a flyer but fliers can sometimes be the most fun. I’ll be reducing my position at the $100M market but hope everyone makes many times that in the years to come. When the market finally turns all of these names will do some unimaginable things to the upside but it’s still important to selective.

Best of luck to all who participate here. Everyone deserves a hit after all of these years. >>John

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I do recall Hochschild Mining was around a very long time ago. And was rumored back then to have put in abid. Does anyone recall or know the story?

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I do recall the name because I had never heard of them before they were mentioned a lifetime ago when the insane criminals were running the show. I don’t remember the story though. For years I’ve been diligently working to wipe the old stories from my mind. Apparently it has worked to some extent. :slight_smile:

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It was a long time ago, and it was a rumor from earlier days.
From an April 14, 2015 post:

“That is all well known history for shareholders that has been here any length of time. Previously announced deals never put in money or got off the ground. Does anyone remember in 2006 when JJ announced he had an official signed offer from Hochschild Chile Mining Company (for CDCH) and was negotiating a deal with Sumitomo Metal Mining Company at the same time?”

An AURYN announcement rekindled the rumor in May 2015:

Experienced Porphyry Copper-­Gold Geologist Luciano Bocanegra Appointed as Advisor by AURYN Mining Chile SpA
May 01, 2015 @ 10:20
Luciano Bocanegra has agreed to assist the AURYN geological team in the search for porphyry deposits within the large Alto de Lipangue project area. Luciano will take up his advisory role with AURYN in mid­‐May and the team will welcome his contribution to the aggressive program that is currently underway.

Luciano has 11 years of experience in mineral exploration and has worked in Chile, Peru, Brazil and Argentina principally searching for and evaluating porphyry projects. He worked for Rio Tinto during the period 2008‐09 and then joined Hochschild Mining PLC as a Senior Geologist until December, 2014. During his years with Hochschild Chile, Luciano was responsible for project generation and also led teams dedicated to advanced deposit definition. He was responsible for the advanced drilling of the Volcan Project located in the Maricunga mining district , in northen Chile.

We welcome Luciano Bocanegra to the AURYN team and look forward to benefitting from his advice and wealth of porphyry exploration experience.

YES thats was it. It was in his pocket and was not ready to share. remember old timers? What a joke!

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Hochschild is the real deal in that area and if we got an LOI from them we are definitely on our way and honestly if they have been around sniffing for 10 years they really want this property and finally someone with brains and honesty is in charge.

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Also, this additional Hochschild connection January 30, 2017:

Dr. Raymond Jannas to assist Maurizio Cordova and AURYN as a geological consultant

Maurizio Cordova, Executive Chairman of AURYN Mining Chile, SpA, has engaged Dr. Raymond Jannas to serve as a geological consultant for the next six months. This will include a significant amount of work evaluating all the targets on the ADL Project including, the Pegaso Nero, the Las Dos Marias, and the Fortuna targets.

Dr. Raymond Jannas is Independent Director at Regulus Resources, Inc., Independent Director at Revelo Resources Corp., and President at Gexsa Ltda. He is on the Board of Directors at Regulus Resources, Inc. and Revelo Resources Corp.

Dr. Jannas was previously employed as Vice President-Exploration & Geology by Hochschild Mining Plc, Chief Executive Officer by Minera Fuego Ltda., and a Manager-South America Exploration by Gold Fields Ltd. He also served on the board at Iron Creek Capital Corp. and Southern Legacy Minerals, Inc.

Dr. Jannas received his undergraduate degree from the University of Chile and a doctorate degree from Harvard University.

… and in March 2017:

Auryn CEO, Maurizio Cordova, and consulting geologist, Dr. Raymond Jannas, will accompany Dr. Sillitoe as he reviews Auryn’s exploration data and tours the property.

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10,500 shares have traded already for cdchd…the last 2 days have had higher than average trading and going up
Bid 1.49
Ask 1.50

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Here’s a good review on binding and nonbinding LOIs.

https://www.wileyrein.com/newsroom-newsletters-item-4160.html

As cdchd probably continues to go up as volume increases, how does that effect the mdmn price, based on the formula that we were using to figure out the conversion price? Anybody?

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As of right now CDCHD is trading at $1.30. Using the supposed conversion factor, MDMN should be trading at $.0076

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Hi mangelsen and mdeman,

Mdeman nailed it on the ratio. Theoretically if you multiply the CDCHD price by 0.0058 you should get the Medinah price. On the day of the distribution/conversion that will almost assuredly be the case due to arbitrageurs.

Between now and then who the heck knows. Over the next 4 or so months the share structure characteristics between the two couldn’t be more dissimilar just like we’re experiencing now. This is currently a SHARE STRUCTURE play. Theoretically the share price of CDCHD could rapidly advance to the price at which Cerro shareholders start breaking even.

Those of us that live and breathe Medinah and Cerro need to take a step back and realize that pretty much nobody in the mining investment arena have a clue that Medinah owns about a fourth of the action at the ADL. The out of kilter ratio between the two might attest to that. I don’t think that Auryn refers to “Medinah” much on their website for those doing due dili on Auryn. When Hochschild puts out a PR on their deal with Auryn I seriously doubt there will be a reference to “Medinah” so the ratio might get even more out of kilter.

Part of the uncertainty comes from the notoriously difficult task it is to place an appropriate “valuation” on the ADL at its current stage of development. The correct valuation is in the midst of a range that is so wide that it doesn’t help matters. This is exacerbated by the fact that we have been held in an informational vacuum for so long.

The dynamics of a market in which the average investor is sitting on a 10-fold profit versus a 5-fold loss is immense. So too are the dynamics within a company with 3 billion shares outstanding like “MDMN” (actually 30 million post-share consolidation) and 3.5 million shares (AUMC) is equally immense.

I can’t use a “market comp” valuation because I obviously can’t find a “comp” with all of these attributes particularly at this stage of development for a deposit with this many different deposit types present. Hochschild’s decision to join in makes perfectly good sense. They specialize in 3 deposit types: skarns, epithermal veins and porphyries. We know that the LDM features skarns, epithermal veins, evidence of an ocoitic andesite porphyry and a stratabound deposit. Recall how Hochschild bought out Andina’s “Volcan” deposit up north of us near Copiapo.

I think the proper valuation estimation to deploy for the ADL Mining District is to study the terms of the strategic alliances/joint ventures that Maurizio enters into. Between the informational vacuum we have been living in and the technical complexity of this industry I think we need to defer the valuation estimates to the professionals willing to write big checks.

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If I recall correctly whether it was true or just a rumor I heard Hochschild did put in a bid years ago, but it was turned down because they wanted to cherry pick the property and were not willing to take on the whole block of claims. That is what I recall.

NIce to see some volume pick up in CDCHD about 20k in stock purchased today. I know it’s not much but it’s the right direction.

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At A 100 to 1 RS that’s 2 million shares traded before the RS