After this great news our SP is still in the gutter. I remember back in the day any mention on a possible JV being signed the SP flew. Well now we have a signed JV with a recognizable partner in Hochschild.
People are guessing first quarter 2019.
No. They are not part of it.
That’s because this stock is damaged and stigmatized by its past. That probably won’t change until we are trading under one symbol and there are more than sporadic indications of progress. How many past MDMN/CDCH shareholders are buying now?
Plus, there are so many other depressed mining stocks out there with less baggage and risk attached. Only those in the know (if there is something to know), those who have high risk tolerances or those that have no idea if MDMN’s past would be buying now.
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What about the equation that mdmn stock would be worth .0058 upon conversion. Is that still valid or we can throw that theory out the window?
That’s a share conversion rate, not a price. TR explained it pretty well:
Probably should note that as of now:
1 million shares of Medinah is worth $2200.
5580 shares of Auryn is worth $3069(bid) X $5189(ask) which would represent a pretty significant premium for Medinah shareholders.
I’m going to guess we will see an increase in Medinah’s share price in January and significant decrease in Auryn assuming the conversion news comes out so they met roughly in the middle.
I think the conversion won’t be a wash for a number reasons:
- Tax selling will be over.
- Conversion to AUMC with Medinah going away will be judged a positive by most.
- Drilling news, production news etc. might help AUMC’s share price.
- Doesn’t appear to be any shares left to sell in AUMC. Newly issued shares to Medinah shareholders may not be immediately liquid.
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Hi K town,
All Hochschild got was “the LDM” but it appears to be an expanded LDM compared to what we had been referring to as “the LDM” in the past. The map of the new Hochschild JV area suggests that the expansion was to the south of the old LDM on the southern side of the ridge crest. Since Hochschild is known for being one of the premier developers of underground mines exploiting gold and silver in epithermal and mesothermal veins, I think it’s fair to assume that something might be brewing to the south of the ridge crest that might involve underground efforts. This is in the region where the work of DeGana et al found and reconnaisance-mapped a massive hydrothermal system in 1996.
North of the E to W oriented ridge crest in the area of the western plateau (what we’ve known as the “LDM”) it looks like Medinah/“AUMC” has a good shot at a “Lacustrine stratabound/manto deposit”. Since the stratabound deposits in our area are mainly developed via open pits i.e. Lo Aguirre and El Soldado, which is not Hochschild’s forte, this is why the news of a confirmed JV might be suggestive of recently identified epithermal prospects amenable to underground development.
The area of the LDM north of the ridge crest did have promising (epithermal and/or manto type stratabound deposits) that were developed historically via underground methodologies at the “Las Dos Marias” Mine. “NUOCO” drifted an adit in this area and found the same types of copper found in the typical “Lacustrine Belt of stratabound deposits” in Central Chile i.e. chalcocite, chalcopyrite, malachite and bornite but Hochschild is more famous for developing gold and silver deposits so I’m a little bit confused of Hochschild’s role in the copper development aspects but silver is often associated with copper in “Lacustrine statabound deposits”.
In the gold areas at the LDM, ACA Howe and Gordon House noted that even the tailings piles (post-processing discards) from the LDM Mine were running at 5.3 gpt gold which tells us that the head grade there was pretty impressive and/or the processing technology used was not too advanced (trapiche?).
IMO, the elephant in the room for Medinah and Auryn pubco (“AUMC”) is still the Pegaso Nero which may take a consortium of majors to develop (like El Soldado needed). Behind that you’ve got the insanely high grades found at the Larrissa Adit/Merlin 1 Vein as well as at the Fortuna de Lampa Mine over 30 years of production. You need to overlay the 90-plus gpt historical gold production at the Fortuna Mine plus two other things. One was AMC’S trenching program revealing 5,000 meters of epithermal veins near the Fortuna Mine and ACA Howe’s comment that even after 30 years of very high grade production at the Fortuna Mine NOBODY HAS EVEN SCRATCHED THE SURFACE OF THIS EPITHERMAL/MESOTHERMAL(?) SYSTEM. This statement may have been confirmed by AMC privateco’s trenching results.
The LDM is still a potential company builder all by itself as the fate of the other subdivisions of the ADL play out. We need to appreciate the significance of just how complex the geosciences are and the mining industry itself. The pros can run circles around us mere investors. When the geoscientists at a mining power like Hochschild take an interest in the LDM by signing a binding LOI and then perform several stages of development and then come back to Medinah and AMC and say yep “we’re in” then that’s pretty important in corroborating the potential of the project. The willingness to spend a lot of money involving drill target definition followed by drilling makes a strong statement. The anticipated information flow from these endeavors will soon put AUMC “into play” within the mining investment community. We also need to keep in mind “the Sillitoe effect”. We learned from an earlier press release that Hochschild will be following the plan drafted by Sillitoe himself. Before committing to the project, Hochschild was given access to Sillitoe’s findings and after seeing these they said yes. We investors have not been privvy to Sillitoe’s report. Sillitoe was retained to study matters based on a “regional” scale. Hopefully Hochschild’s findings can be used to advance the geomodeling efforts for the entire ADL Mining District.
The macro scene in the current mining industry is a bit of a mixed bag. Investments in the industry have recently been out of favor due to the metals prices failing to gain much traction. However, the reality is that we are at a 25-year low in new mineral discoveries and the Mineral Rerserves/Mineral Resources (MR/MR) on the balance sheets of the majors are at a 30-year low. These realities exist in an industry wherein it is EXISTENTIAL for the majors to constantly replace that which they mine with new MR/MR. With many of the majors having curtailed their exploration programs after overspending on projects back when gold peaked in 2011 this has exacerbated the lack of supply of new discoveries.
Any junior with a bona fide discovery is going to be sitting pretty ONCE THE DISCOVERY HAS BEEN CONFIRMED ESPECIALLY BY THE EFFORTS OF A HOCHSCHILD TYPE MINING ENTITY. The current imbalance between the supply of and demand for new discoveries will make sure that the investors in the company with the discovery will be rewarded. This is not the mining scenario in which fancy promoters will drive up the price of a stock. The retail investors are on the sidelines; the majors needing to replace their MR/MR are not. The trouble is that it costs money (usually through drilling) to irrefutably prove the bona fides of your deposit to interested majors. To me, this explains the true significance of the Hochschild deal i.e. providing a potential catalyst to put AUMC “into play” with information flow while providing the funding capable of proving the bona fides of the deposit to those majors desperately in need of replacing the ounces of MR/MR they are constantly pulling out of the earth.
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Thank you brecciaboy for your detailed answer. Now are we looking to JV with someone else for the Fortuna de Lampa and the Larissa Adit/Merlin? You have said we may need a consortium of majors for the Pegaso Nero so at some point more JV’s should be coming on stream?? Thanks for your reply…
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Good post Hurricane.
People who are anguished / discontented on this stock/company, have to remember its past, both the good and shady times.
This stock has a brown streak in its shorts from the disappointing, dubious, cagy, unethical, unscrupulous, turn of events in its history. Just as a bad car made by the auto industry,
it takes many good ones to erase the past failures…
We, as with this mountains NEW owners, find ourself in that same spot “now”.
So we wait for the tide to turn…
No use looking for any stock movement during the lead up to Holiday break and a few dayz after.
Just as your neighbors heading out for Xmas. …the big rollers and brokers MMs that run this market, are on their way to their villas in Vale, or their yachts on the Riviera to spend our Money.
So go enjoy your family, dog, cat, health, good fortune, snow or what ever winds your binder.
That mountain is doing the same. It will get back to work in 2019. C. D.
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This was posted over on Ihub
medinah remains in default in the state of nevada and no longer has a registered agent to carry on legal business in the state of nevada or elsewhere
In most states, that’s just an administrative default, which can be quickly cured by paying the annual fee.
Medinah has been in default probably at least a dozen times over the years in the State of Nevada. Not clear if they have to pay the fee before the conversion or whether they won’t even bother.
They’ll eventually have to pay it, as the end game, after conversion, I think is to dissolve the company - the company must be in good standing with the Secretary of State before they will grant dissolution.
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By not paying fee, after a period of time (approx 3 months) the State will involuntarily dissolve the corp. You only have to be current if you want to voluntarily dissolve (or other actions). Those with more experience with the share conversion can speak to the effect of an involuntary or voluntary dismissal.
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Yikes…Someone just dumped 4 million shares at .02. Then 2 million more after that. Looks like more to come. Looks like Baldy played it right…
That’s a weird trade there are sell orders at .0022 and .0021 that were by-passed.
I’m no expert in share conversion but I did sleep in a Holiday Inn Express once! 
This is a wait and see game for now until we know more. At some point they’ll need to get current with the state. I don’t know if this is before or after Medinah orders a OBO/NOBO list of MDMN shareholders, otherwise who do they distribute to? A voluntary trading halt may be necessary after AUMC shares are unrestricted and distributed to MDMN Corporation. Then, at that point in time, a NOBO list identifying all individual MDMN shareholders and their brokerage accounts is ordered by MDMN. After obtaining the OBO/NOBO list AUMC shares can be distributed pro rata to individual shareholders’ brokerage accounts rather seamlessly. Then the trading suspension could resume trading allowing a fair and orderly market. Maybe someone else on the forum has a different idea on how this will be accomplished.
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I’ve been buying, bought a bunch last week. Probably pretty crazy, but I’m thinking Hochschild is associating their name with the mountain and that they know MORE than we do. Not to mention the fact that other, reputable professionals in the past have associated their names with the mountain. Further, I’m thinking the potential production we were all dreaming of a couple years back just might come to fruition in 2019. If it does, things will change, at least a little. Personally, even though one can respectfully argue that even at this level the share price is too high, the current price is at near record lows. I have significantly lowered my average per share price. If this stock makes it to 3 cents, I will have made a significant profit. I don’t expect such movement any time soon - just a potential for 2019.
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There also seems to be a big buyer at .002, fwiw