The Mining Play

Medinah/Auryn - 2018 Q4 General Discussion


#61

Can anyone shine any light on other mining operations working on, or around the same mountain
MDMN is on? This being for comparisons on what, and how they might be progressing.
Or for that matter any mountains around Santiago?
Also what may be the political and populous feeling toward mining in or around Santiago?
I / we know the country is friendly toward mining in general, just trying to get a
update on that status, as we get close to the end of this year.

Thanks in advance.


#62

The 100 million dollar investment Masglas was studying was to build a new plant to process 12 million tons of high grade silver and gold sulphide and ore…


#63

It was surmised a while back this was all about a backdoor way to get a MASGLAS subsidiary (namely MASGLAS Peru S.A.C.) access onto a public exchange via an RTO with Western Troy (TSX.V:WRY). We have yet to hear if the proposed RTO has been sucessfully approved. An announcement is overdue.

From the Western Troy Annual Meeting Results announced August 2:

With the AGM completed, Western Troy will focus its efforts on completing the MASGLAS Peru S.A.C. transaction as announced in Western Troy’s press release of June 29, 2018, including:

  1. Western Troy will execute a share consolidation of one for five shares as was authorized at the 2017 Annual General Meeting of Shareholders;
  2. Western Troy is funding a 43-101 Technical Report on the San Nicolas Properties. It is anticipated the draft report will be ready for TSX-V exchange review in mid to late August.
  3. Western Troy will initiate a private placement to raise a minimum of C$500,000.
  4. Western Troy will announce a special meeting of shareholders to approve the Reverse Take- Over (RTO) process. Under the RTO process, Western Troy will obtain 100 percent of the shares of MASGLAS Peru S.A.C and Western Troy will convey 32,731,976 shares to MASGLAS after the one for five share consolidation as described above. It is anticipated that the special meeting of shareholders will take place in late October of 2018.
    Rex Loesby, Western Troy’s CEO, commented, “We are happy to have the AGM behind us so we can concentrate on executing the MASGLAS and San Nicolas Properties transaction as soon as practical. We are happy to have received strong shareholder support for the MASGLAS transaction as demonstrated by the AGM voting.”
    https://static1.squarespace.com/static/54da74ade4b0cecc7658ba2e/t/5b64103c758d4682d85ad4af/1533284412825/WT+PR+AGM+Results+8-1-18.pdf

Further details of the proposed RTO announced June 29 via an LOI are found here:
(https://static1.squarespace.com/static/54da74ade4b0cecc7658ba2e/t/5b382e2d88251b4f1d70479d/1530408494073/WT+PR+MASGLAS+LOI+%26+Rollback+6-27-18.pdf)


#64

We have yet another new Masglas name used in this article: “Masglas Americas Corporation”. See the subtitle of the article. This is instead of the “Masglas Peru” that was used in reference to this transaction in previous news releases. And both of these are different (at least in name) from the “Masglas Limited” which appears to be a Chilean corporation and is associated (and apparently majority share holder) of Auryn Mining, Chile. Anywhooo …

Western Troy has not traded since June 28. They held an Annual Meeting in early Aug. They have been silent until today they filed their Q3 (fiscal year ends Nov 31, Q3 ends Aug 31) filings on Sedar. See the MD&A there. There isn’t much new except that it seems they are still waiting on a formal 43-101 technical report on the San Nicolas mine in Peru. And they indicate that they are still on course for the transaction.

They also show tonnage of 11.8MT (thus the 12M tonnes mentioned in the article) from a historical report on the San Nicolas mine. The gold grade is > 2g/T and amounts to an estimated 884KOz of gold and 62M oz of silver. That amounts to $1.1B in-situ value. So maybe the $100M cost would be a good deal depending on the details.


#65

Was hoping for a quick update with quarterlies…
We shall see


#66

Masglas Americas name has been used before and it was actually the name used when I first heard of them from an article about them buying assets in a down mining market in Chile!

If you page down in the following link you will find that article:


#67

Good catch CHG and Karl! There is a difference between “Masglas Americas Corporation” and not the “Masglas Peru” that was used in the LOI that should not be overlooked. MASGLAS has not been transparent in revealing their corporate structure(s), but it is apparent that under Maurizio Cordova the various companies share a common management, and likely a common funding base of investors for their various private corporate activities. It appears to me the distinction between “Masglas Peru” and “Masglas Americas Corporation” is modeled after how management structured AURYN Mining Chile SpA (AURYN) and Auryn Mining Corporation (AUMC). It could be they are anticipating that after the RTO is finalized management will eventually bring “Masglas Americas Corporation” into the publicly traded realm while keeping “Masglas Peru” the private parent company. This would be similar to what occurred with AURYN (Chile) and what is now AUMC.

(https://www.bnamericas.com/company-profile/en/masglas-america-corporation-spa-masglas)
Has anyone else noticed this website for Masglas America Corporation SpA (MASGLAS)? It is a Chilean company engaged in the acquisition, exploration, and financing of mining projects. It is distinctively different website than http://masglas.com, although they are essentially the same company. It is an older site as Karl pointed out.

The company holds an interest in eleven prospective gold, silver and copper projects in the country and wholly-owns the Agilucho, Condor, Fortuna, Llano, Mali, Platón, Poseidón, Teseo, and Triskelion projects, which cover a total area of more than 30,000ha and are located across Chile’s third and fourth regions. Through its subsidiary Auryn Mining SpA, the company owns 10,500ha of mining claims at the Altos de Lipangue historical mining district. In 2017, it acquired the Araya Breccia copper project, a 103ha property 50km east of Copiapo, from Canadian firm Revelo Resources Corp. Masglas is headquartered in Santiago.

Also, http://aurynmining.com has a website for the historical data on the claims, and a new one for the publicly traded part of the company, https://aurynminingcorp.com/notifications/. The newer website essentially picks up notifications where the historical private company leaves off. It would seem to confuse newer investors somewhat, but those shareholders that have been here have followed this transition. It is much less transparent than would be expected for a publicly traded company. One can only deduce there is a good and legitimate strategic reason for this. It will become clearer after MDMN is rolled into AUMC, IMO.


#68

Masglas Americas Corporation, a private firm backed by Peruvian capital, acquired nine exploration properties in Region III and VI from First Quantum Minerals (NYSE: FQM) for an undisclosed sum.

Nice. So it seems likely Masglas Peru is probably a subsidiary of Masglas Americas / Masglas Limited.


#69

Endless shares selling at the .003 mark for the past year. Is it still les? When’s this stock going to finally gain some altitude?


#70

no trades today. excitement is underwhelming!


#71

For someone who purchased some MDMN / CDCH shares back in 2010, I have been out of the loop due to tanking of my small investment in this venture. Ive held my own for the last 8 years and not sold.

Is it more likely that the MDMN stock at 0.003 rolls into another stock (AUMC? CDCHD?) or that this stock eventually going fold?


#72

Your MDMN shares convert to .00558 shares of AUMC sometime in December. If you owned any CDCH shares and still hold them they are now AUMC shares and are 1% of what you owned due to a reverse split. Ie: 150,000 shares are now 1,500 shares.


#73

Masglas Americas, Masglas Peru, Auryn, Aumc , Cdch. It will be interesting to see how this all plays out. I’m counting on some positive news to move the price, based on insiders personal stake in Medinah. Maybe they are looking how Mux is structured and attempting to follow suit.


#74

Western Troy closing of RTO with MASGLAS delayed

2018-11-05 17:06 ET - News Release

Mr. Rex Loesby reports

WESTERN TROY PROVIDES UPDATE ON PROPOSED RTO WITH MASGLAS PERU S.A.C.

Western Troy Capital Resources Inc. has provided an update with respect to its previously announced proposed reverse takeover transaction with MASGLAS Peru SAC.

Update Regarding Proposed RTO

On June 29, 2018, Western Troy announced that it had entered into a binding letter of intent (the “LOI”) with respect to a proposed transaction whereby the shareholders of MASGLAS would sell to Western Troy 100 percent of the outstanding shares of MASGLAS and Western Troy would issue 32,731,976 shares, after a one for five share consolidation, to the selling shareholders in exchange for their MASGLAS shares. Immediately upon completion of the Proposed RTO and after the proposed share consolidation, Western Troy’s then current shareholders would hold approximately 8,182,994 common shares of Western Troy. MASGLAS, a company incorporated under the laws of Peru, is seeking to acquire not less than 70% of outstanding shares of Compania San Nicolas S.A. (“San Nicolas”), a Peruvian company with assets that include the San Nicolas Mine properties, the Cosinsa Mill, and other related concessions and properties in the region.

While the letter of intent is binding on the parties, the completion of the Proposed RTO is subject to a number of conditions precedent, including Western Troy and MASGLAS each being satisfied with the results their respective due diligence investigations of the other party on or before December 3, 2018, failing which either party has the right to terminate the LOI and the Proposed RTO by giving notice to the other prior to such date.

The completion of the proposed RTO is also subject to the following conditions precedent:

MASGLAS and Western Troy obtaining all necessary consents, approvals and other authorizations of any regulatory authorities, shareholders or third parties for the Proposed RTO, including acceptance by the TSX Venture Exchange (the “TSXV”);

MASGLAS delivering to Western Troy audited and unaudited financial statements of MASGLAS, as applicable, for the periods required under applicable regulatory requirements;

Western Troy generating a current technical report for the San Nicolas property prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Properties;

Western Troy completing a private placement financing for gross proceeds of not less than $500,000 at a price of not less than $0.15 per Western Troy Share (post proposed share consolidation);

Sierra Minerals Corporation/Mr. Rex Loesby and MASGLAS shall have entered into consulting agreements in a form satisfactory to Western Troy, acting reasonably;

The representations and warranties of MASGLAS and Western Troy in the proposed share exchange agreement proposed to be entered into by them remaining accurate at and as of the closing, and no material adverse change in the respective business of MASGLAS and Western Troy having occurred: and

The selling MASGLAS shareholders entering into a nomination rights agreement with Western Troy, pursuant to which they may jointly nominate three individuals to be elected to the board of directors of Western Troy for a period of three years after closing.

It was originally envisioned that the Proposed RTO could be completed by the end of October 2018. However, while a number of these conditions precedent have been satisfied, some have yet to be completed and the completion of the Proposed RTO has been delayed. The parties continue to work separately to try to satisfy the necessary conditions precedent, including MASGLAS completing the acquisition of San Nicholas, finalizing the required technical report for the San Nicholas property (which is now substantially completed) and preparing the required financial statements for MASGLAS and San Nicholas. If the applicable conditions precedent to the Proposed RTO can be satisfied by late November 2018, as planned by the parties, Western Troy anticipates that it will hold a special meeting of its shareholders to approve the transaction (including the proposed share consolidation) in February 2019, on a date to be announced. In addition, if these conditions are satisfied, Western Troy plans to issue a comprehensive news release, in the form required by the TSXV and containing additional details of the transaction. Trading in Western Troy’s common shares is expected to continue to be halted until after such news release is issued and any other conditions of the TSXV are satisfied.

In its news release dated July 23, 2018, Western Troy disclosed certain historic information about previously reported resources at the San Nicolas project. With respect to this disclosure, Western Troy clarifies that none of the historic resource calculations reported in this news release were verified by Western Troy or meet the classification and guidelines as adopted by the CIM Council. Further study and additional work will need to be carried out to determine the validity of the disclosed historical estimates and classification of resources. Further, Western Troy clarifies that neither Mr. Friberg, the “Qualified Person” named in the news release, nor any other qualified person has done sufficient work to classify any of the reported historical estimates as current mineral resources, and that Western Troy is not treating any of the historical estimates for the San Nicholas project described in the news release as current mineral resources.


#75

Nice to see Western Troy’s update and that the ROI/RTO is still progressing, although delayed… It appears MASGLAS Peru is, or at least started, as a true subsidiary of MASGLAS. I noticed that MASGLAS has on their website:

Mining options for acquiring 100% ownership:
San Nicolas (Ag-Au-Cu mine in Cajamarca, Peru)
http://masglas.com

Aparently MASGLAS/MASGLAS Peru has been working quietly on putting this acquisition together for quite some time, although I don’t know exactly when the above information was first posted on the MASGLAS website. The website above has not been updated in quite some time as it still includes “AURYN Mining Chile SpA (which currently holds 95% of Cerro Dorado Inc. CDCH)” whose embedded link brings up the old Cerro website.
(https://cerrodorado.com)

In February 2019, if/when the RTO is approved and finalized, the corporate structure for MASGLAS Peru may become clearer as a publicly traded company. I expect MASGLAS Peru is an entity that will be completely absorbed into Western Troy via the RTO. (“Under the RTO process, Western Troy will obtain 100 percent of the shares of MASGLAS Peru S.A.C and Western Troy will convey 32,731,976 shares to MASGLAS after the one for five share consolidation as described above.”) Whatever the corporate structure between MASGLAS Peru and Western Troy looks like after the RTO, it is likely in a transition phase to something larger and a higher exchange. Regarless, the new company will be closely aligned with the MASGLAS principals largely running the newly formed company. Corporate bookkeeping will be simplified and cleaned up for public trading, reporting and promotion.


#76

What will they be worth as AUMC? Hmmm, trading today at 1.1, so if I have 500,000 shares now, worth $1,500, I’ll have 2790 shares of AUMC in December, worth $3,069?


#77

Yes, assuming the price is still $1.10 at conversion in December


#78

AUMC dropped 33% today to .78. Wonder what triggered that?


#79

Someone selling 114 shares at .78. So, 114 shares @ 1.10 - .78 = $36.48

Someone sold the shares costing him/her $36.48 to shake somebody up.


#80

They needed gas money.