The Mining Play

Medinah Minerals (MDMN) - 2016-Q1 - General Discussion


We need someone like the Corleone family attorney Tom Hagen who can bring everyone together


Hi rgver,

When you study that 72% “declared short sale” volume it helps if you have a daily price chart in front of you and you keep in mind what a truly “bona fide MM” does. The MMs that made those short sales signed off that they neither own nor have a retail “long sale” order in their back pocket from a client. By law the MM only needs to have “reasonable grounds” that he can borrow some shares i.e. make a “locate” and deliver the borrowed shares by settlement date 3 days later. “Reasonable grounds” remains undefined to this day. To Goldman Sachs making a “locate” amounted to a clerk hitting an “F3” button connected to a Ponzi scheme of an infinite amount of borrowable shares. See Below:

A truly “bona fide MM” can only “inject liquidity” by naked short selling phantom shares when buy orders dwarf sell orders and he is theoretically trying to keep the share price from gapping upwards to unsustainable levels. If the share price is ticking downwards then by definition that is NOT bona fide market making activity.

A truly bona fide MM is actually a good guy performing a necessary function. He’ll naked short sale phantom shares into massive waves of buying that otherwise might have propelled the share price to unsustainable levels but then he is supposed to buy back those phantom shares when massive amounts of selling appear. They’re supposed to hover around a net neutral position at all times.

When “decimalization” kicked into our markets many years ago the “spreads” that a bona fide MM made a living off of became razor thin. They didn’t like that. A new vigilante breed of MMs arose that took it upon themselves to play sheriff and NSS to death companies that they deemed to be “scammy”. The regulators didn’t seem to mind because often they were correct and they were able to wipe out truly scammy corporations via dilution and save the investment funds of future investors that may have been taken for a ride. Their payment was the funds of the investors they sold phantom shares to.

The problem was that they would once in a while misdiagnose a struggling development stage company as a “scam”. If that once struggling development stage company “accidentally” hit it big then certain issues arose like what to do with the massive naked short position they racked up. These cases are where you see 72% “declared short sales” in a stock that is already ticking downwards i.e. not so bona fide market making. These cases often result in easy to diagnose DISCONNECTS between the market cap of the company under attack and the value of its assets as calculated using industry norms.

Until the company under attack gains ACCESS TO CASH there’s not a whole lot they can do. If they were to not only survive the attack but also somehow gain ACCESS TO CASH then these DISCONNECTS can rapidly unwind and a market cap closer to fair market value will result. This is not a “short squeeze”. If you’re a non-reporting issuer (corporation) not subject to the Section 12 and Section 15 reporting requirements of the '34 Act then the SEC has a history of not caring about you because any investor in one of these development stage issuers is deemed to deserve whatever the MMs do to them because these companies skirted the reporting companies that the big boys must follow.


LEVEL 2 please.




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Looks like the seller may be back. 710000 @ .0165 through Etrade

There you go Auryn take it


Nothing but a flipper.


I am wondering if Mike Gold has any idea when the Auryn meetings this week will be concluded and whether he has heard anything coming out of the meetings.
Or if any of our forum’ s other key posters have any knowledge of what may may be going on, can they share what they are hearing?


What is the short version of why it is good for the shareholder’s if Auryn does do some early production prior to executing the agreement by turning over the $100 mill.?


Just a WAG, but if there is an early production agreement that puts some cash into MDMN and/or CDCH, BOD would likely start to consolidate NUOCO/LDM into Medinah. If Fortuna is part of the production agreement for cash, the Days may be positioned to buy out JJ’s 50%.



John sorry in regards to your volcan post what are we looking for?


GROWTH (Volcan):

The vision of the Company is based on sustained growth over time, supported by three axes:
The first axis is the consolidation and growth of current mining units. The second axis is the development of the company’s large portfolio of highly prospective mining concessions. The third axis is growth by means of strategic acquisitions of new development projects and mining operations.

Volcan will continue to develop its portfolio of mining projects and geological explorations, while continuously searching for new opportunities that fit with its growth strategy in order to maintain its leadership in the production of zinc, silver and lead and become a relevant player in the production of copper and gold. Solid and profitable growth will be achieved by executing a disciplined investment process that utilizes the best practices of the industry and is supplemented with Volcan’s own innovative methods.


I know nothing, but hopefully some aspect of it has to do with getting JJ and family as much out of the way as possible, if not completely. Personally speaking, I read the last MDMN update several times. I came away wondering what it actually meant because I didn’t see much of any detail to any of it. I wonder how much of it was kept vague to leave shareholders to make assumptions. Either that or I’m simply even dumber than I thought I was about this whole process, which is easily within the realm of possibility.

FYI I’m about to do a chart update for gold and possibly oil tonight. I’ve lost my mojo for the past week or so, but I’m sure I’ll get it back at some point and get back to posting more often. Hope everyone is enjoying life and keeping this little paradigm in perspective.


We’re about to get hammered with Blizzard 2016. We just spent the evening watching Ken Burns’ documentary on the Dust Bowl. That will put things in perspective real quick.


Neither sounds like much fun. Be safe.


Maybe moving down to Sarasota is the answer… You’ll find a great friendship with TR :wink:


Mr. Wizard,

I suggest it is time to panic for your area! :smile:

Re:Medinah. Les was confirmed to be in Chile already signing contracts Tuesday morning.


It looks like we’ll get 2’ to 3’ this weekend! I’ll take 1/2 penny for each inch of snow we get and be delighted!


So Mike do expect positive things to come out of these meetings?