This site is sorely missing a “skip poster” button so …
skip, skip, skip
3 Likes
That’s More reliable…
Part of the problem with all of these theories is we don’t even know the ownership structure of AMC SPA, the Italian corporation. Has this ownership structure changed recently? Is there a major miner involved or about to be involved? Is there a mine “operator” in there yet for at least the early production opportunities? This would be an awfully large project to fly solo on although if you’re confident with that which you have an option on you’d probably want to fly solo as long as you can while the value is growing in a robust manner.
Auryn Mining Chile (without the SPA suffix) is the typical Chilean subco formed by at least 2 directors and officers with DL 600 credentials. This allows AMC SPA to move money in and out of the country and it also bestows favorable tax advantages. At one point, I believe the rumor was that the Letts family owns 50% of AMC, SPA.
The legal title to mining concessions in Chile need to be held in the Chilean subco whether it be MMC for Medinah or AMC for AMC, SPA. In the discussion about “tender offers”, I think we need to refine the discussion one step further and incorporate whether or not were talking about Chilean subcos or the publicly traded or private holding company that formed the Chilean subco.
Unless Medinah wants to jettison all noncore assets, I would think that MMC will survive to hold the title to those assets. The other thing to keep an eye on is LEGAL TITLE to the mining concessions. The ADL unilateral option purchase agreement states that legal title to the 4,500 ha or so ADL package of concessions will flow to AMC. As far as Nuoco goes, I would assume that Medinah’s option (which was crafted by AMC,SPA lawyers-hint, hint) to purchase the 85% of Nuoco they don’t already own would include the titles flowing to MMC. As far as Cerro goes who knows what arrangements are being made there.
The pattern to date has been to consolidate all concessions and stuff them or create a legal pathway to stuff them into MMC. Since Medinah already owns 7.5 million shares of Cerro, one might anticipate Medinah taking a run at the percentage they don’t already own. This might involve a share exchange of Cerro assets for Medinah shares done under the guidance of an arbiter via a fairness opinion. This is just a guess but almost a necessity if an open pit is involved in exploiting the Merlin-Fortuna Vein deposit.
I would think that AMC would want these various transactions going down pretty much SIMULTANEOUSLY. Otherwise any hold out could sit back and watch the development occur and seek a better deal later, for instance, for Cerro’s retained 15%. An amalgamation of Cerro and Medinah would also get the Quijanos out of that equation so I would assume that some type of deal gets struck between the Quijanos and Cerro as a precursor. It will be interesting to see what percentage of Cerro’s equity that the Medinah 7.5 million share block represents or what AMC might be willing to pay Medinah for it or an option on it. Lots of balls up in the air waiting for a log jam breaker.
3 Likes
Yada yada yada…man some of you guys sure like hearing yourselves talk. Get a life eh! Been here 15+ years…got better things too do than read posts here…hence I skim 
Oh ya…Merry Christmas everyone…go spend it with your families!
6 Likes
Lean,
I’m not into the BLAME GAME. The reason has to do with the weak link in all Internet investment forums. When share prices suck a certain subset of investors typically with ego issues just need to BLAME somebody else because they just can’t believe they would make a mistake. These aren’t bad people; that’s just how they’re wired. The problem with investment forums is that the party on the receiving end of the BLAME when share prices suck is always management and management is not allowed to defend their actions on an Internet forum due to corporate governance issues. It’s like having a debate against an empty chair. Some people prefer to debate against an empty chair because they don’t always have their facts straight and they sense they can get away with blatant misrepresentations.
You know when an investment forum has been HIJACKED when you note that anybody choosing to temporarily sit in that empty chair which management can’t sit in with the intent to at least present the flip side of an argument that is contrary to a blamer’s opinion has to be bullied off of the stage or discredited. These are the people that prefer the empty chair debate format.
An investment forum is supposed to resemble a pot luck. You bring your offering/opinion to the party and set it on the table. You let the other observers judge the merits of the offering ON THEIR OWN. YOU DON’T TELL PEOPLE WHAT TO THINK. You’re comment suggests that we OFFICIALLY make the Quijanos the party to blame. I don’t have the visibility of the playing field to make that determination nor would I vocalize it if I thought I did have that visibility. I’m a tongue biter and I can’t tell you how many times I’ve thanked my MAKER for making me one because I’ve been off base so many times before all of the data arrived that I’m ashamed to think of what I was tempted to say. What this forum has been converted into is a game of “King of the hill” for would be grown ups that thrive on “empty chair” debates.
5 Likes
A very good analogy, bb! Thanks
And Over seasoning with arrogance can make a contribution less appealing.
1 Like
A tongue biter? Let’s try to keep at least one foot in reality. You’ve offered more hypotheticals on this board than every other poster combined. A good slug of the dialogue here is countering your points of view until they are proven wrong and then countering your new points of view. You have been steadfast in your defense of this BOD and their ability to execute and this unwillingness to assign fault (read: blame) has probably been the biggest contributor to loss of credibility. This “debate” ended many years ago. You’re knowledge of the mountain is second to none. If you actually DID bite your tongue when it came to the monetization of the mountain and the BOD’s struggle to do so, you would be the coveted “King of the Hill.”
5 Likes
A tongue biter?
Who is debating to be to be the coveted “King of the Hill” or, is it “King of the Cherry Pickers” here?
(Sorry, couldn’t resist!) 
Just funny how two of the most knowledgeable posters here continue this same conversation forward year after year!
2 Likes
Not entirely correct because MDMN’s equity jumps from 15% of Auryn plus $100 M cash (or $115 M which is $100 M cash plus 15% of Auryn $100M asset purchase of ADL assuming Auryn has no other assets) to 50% percent of the merged combined entity (or 50% of $ 200M which equals $100 M) Since we already own 15% of Auryn’s $100 equity, Auryn would only be bringing 85% ( or $85M) to the merger and MDMN would be bringing $115 M. My assumption of a merger of equals is only to cover Auryn’s efforts to date. I changed the $18 M to $15 M to make it simpler. We really do not know what will happen and what the assets will be really worth once they are proven up so this is just a waste of time. other than trying to understand possible mechanics if there is a merger after the exercise of the purchase option. JMO
1 Like
Read your messages before posting.
Lean still neads to be banned
Scamp what info do you have? Please share
Announcement from AURYN TOMORROW.
2 Likes
Mike Gold!! …
Hahaha
3 Likes