Just some thoughts on the eventual conversion and the significance of the December 15 dateā¦
A countdown clock to the December 15 JV contract signing deadline is an OK idea, but I wouldnāt bet that we hear much on that date, (a little before or after); Much anticipation, though.
I agree with CHG that there will no penalty if the LOI just expires, but think the likelihood of that is rather low. Even though money and markets are in turmoil, $7M over 5 years is an extremely low investment for a 51% interest in a large property with great potential. Also, $23M for an additional 9% is a large bump that signals Hochschild anticipates there will be an economic deposit worth developing.
Aside from that, Dec 15 was only when CDCH purchased all of AURYNās mining concessions. It says nothing about shares actually being issued on that date, only that the purchase agreement was exercised. Shares being issued likely followed sometime shortly after, exact date unknown. 1st quarter conversion for MDMN shares to AUMC shares is therefore more probable.
Now if the Hochschild signed agreement is announced in December, what will be the effect on MDMN shares? Will AUMC/AURYN management do what was done with WRY? Will a trading halt be requested until the exchange/conversion of MDMN shares for AUMC shares fully takes place? At some time AURYN has to transfer shares to Medinah corp. If there is a prolonged halt, a NOBO/OBO list can be ordered, and shares shuffled over to individual accounts without affecting share price of MDMN. The affect on AUMC would likely be quite noticeable, and I wonder if the halt would additionally be requested there. WRY is on a prolonged halt until after the special meeting, so there is a good reason for it. We donāt know the exact date AUMC shares held by AURYN were issued and donāt actually know when they become unrestricted.
Alternatively, the less complicated thing would be for Hochschild to announce, and AURYN to do nothing until itās AUMC shares become unrestricted. It wouldnāt make sense for AURYN to put restricted shares into individual MDMN shareholdersā brokerage accounts. Weāve experienced quite a hassle getting different brokerages to unrestrict them in the past. Not being allowed to trade converted but still restricted AUMC shares in accounts would be unwise. Would this kind of situation increase active trading and increase PPS of AUMC? It would be a big plus for current shareholders, but may be seen as quite unfair to all those holding MDMN shares.
Additionally, how much of ongoing expenses are going to eventually be taken out of MDMN? Who will be paying for the NOBO/OBO list and distribution? Anyway, Iād be interested to hear some thoughts and discussion as to just how this will all turn out, provided Hochschild does come up with a signed agreement by December 15. Perhaps the signing will be delayed/extended one more time until the AUMC shares are unrestricted and distributed to Medinah corp. Then an announcement of the transfer, along with an announcement of a date of record and date of distribution could proceed smoothly. I share your hope that it will be an exciting end of the year for AUMC and all shareholders. Anyway, we wait until there is an announcement to see how things proceed.