Understanding the “history” of this “investment” should be appreciated by shareholders. There could very easily not exist an investment to whine about. I do agree disclosure and promotion is what shareholders are waiting on. I prefer to put what you are stating in the context of what was occurring at the time test shipments were being sent to ENAMI. Test shipments to ENAMI were the first step to see what extraction methods were needed to maximize ore profitability. Given that adit 3 looked very promising, exploitation was almost assured. So what derailed the investment? The revenue from the test shipments would have been far short of making payroll to the miners working in the tunnel. Revenue was not the primary purpose of the test runs sent to ENAMI. Exploitation was all planned to follow if legal entanglements had gone smoothly, but they did not.
January 2017 was the month shareholders last received a very substantial update from AURYN. It was also a year and one month past when Medinah received notice of the fraud ridden Okanadian lawsuit that was filed in Nevada against Medinah. If the lawsuit was about a simple scrivener’s error it should have been cleared up easily. It was not easily resolved. Piling on of two additional lawsuits from Canada against Medinah early in 2017 were unanticipated, all requiring countersuits and expenditures from Medinah. This was costly and it was made clear in the shareholders informational meeting that Medinah was responsible for clearing the mess up, not AURYN. AURYN (actually Auryn Holding Company, AHC) had already purchased 300M shares of Medinah at this time and had a vested interested in seeing Medinah survive. AHC still holds these shares.
So why would resolving lawsuits make any difference to mining the adits? The last two years are only starting to answer that question. AURYN was publicized as a fully owned subsidiary of MASGLAS at that time in the beginning of 2017. The Feb 15, 2017 shareholder update by AURYN showed things were still looking good to move on to profitable production. Stayner Bates & Jensen P.C. was engaged and AURYN announced it’s intention to have shares listed on the OTCQB® or OTCQX® by the end of 2017. Coincidentally, on February 16 there was an order sealing court records. This raised questions, but was never answered as to why. “Alarm Bells” were going off when the AURYN Shareholder Announcement came out March 9, 2017 to announce a meeting for which the main topic of discussion was proposing to increase the operating capital through a cash call. Why have a cash call?
I don’t think this cash call was being done to raise capital for production costs as much as signaling a corporate structure change for AURYN. Was this “reorganization” to distance MASGLAS from AURYN and shield MASGLAS backers and shareholders from liability? Lawsuits prevented and created an inability for AURYN to move forward onto the public markets and fund production costs. Was MASGLAS at risk? Public markets was the key to AURYN funding initial seed money for production and promotion. I surmise AURYN initially reorganized to become a stand-alone company in anticipation of filing an initial public offering of shares on the OTCQX® or OTCQB® tier of OTC markets. That is only conjecture on my part which I have expressed previously. In retrospect, AURYN clearly did not have an application accepted by the SEC to list as a Foreign Private issuer.
I think announcing that Auryn Mining Chile SpA (AURYN) was hosting Dr. Richard Sillitoe on the Alto de Lipangue from March 15, 2017 through March 19, 2017 is further evidence supporting a theory of how things were still optimistic and unfolding. Was AURYN advised to change plans for an “IPO” application to list on the OTCQX® or OTCQB® and take a simpler but longer route in light of the ongoing lawsuits? An alternative method to go public was chosen, likely by necessity. If AURYN could not list as a Foreign Private company, how could the US public markets be accessed? Check what Stayner Bates & Jensen P.C. areas of consulting services and accounting/auditing expertise are if you do not know why they were chosen.
Whose “books” would contain a revenue entry for initial test shipments after the cash call in Q1 and reorganization of AURYN as a stand-alone company (or subsidiary of AHC)? I don’t think this was required of a private company to publicize to MDMN or CDCH shareholders at this juncture as reorganization was apparently occurring. AHC worked out contracts for Medinah and CDCH to meet cash call obligations. Dec 15, 2017 Cerro Dorado announced acquisition of all AURYN Mining claims and on August 13, 2018 CDCH announced a reverse split, name change and symbol change approval by FINRA.
There has been progressive evidence of the consolidated company, AUMC, meeting part of it’s initial goals. Auryn Mining Corporation cannot complete monetizing development of the claims utilizing the markets until all shares are distributed and freely trading. Shareholders who do not understand this do not understand the strategy management has put in place. Information as to the status of actual developments on the mountain will necessarily be made after that milestone is made.
Karl, I quite simply do not agree that expectations as expressed in your post are realistic. What I think shareholders can expect is a bumpy time-consuming process ahead for a speculative pink sheet company. I can hope that my expectation is completely wrong and that all shareholders see rapid gains in stock price based on announcements and very positive results. Until then, there are other “safer” PM miners out there producing respectable profits to invest in. I don’t know, nor does any shareholder know, if this company will start meeting the production goals AURYN confidently announced on June 16, 2016 projecting an annual production of 25,000 troy ounces from the Caren Mine project. Perhaps it will be much higher, perhaps not. I would also like to see audited financials starting upon which to base any future decisions regarding the stock. It would be great to see an eventual goal reached to list on the OTCQB® or OTCQX® in order to reach a wider investment market if valuations warrant such a move. These are wishful goals for any speculative stock and not projections of future results for now.
Enjoy a wonderful week-end everyone and count your blessing. I know I do.