Wait until I get some money together!
I know this is old news and it belongs on the CDCH board, but could anyone shed some light on what this announcement means?
November 22nd, 2016 Montan Mining Signs Binding LOI To Acquire Cerro Dorado And Closes First Tranche Of Non-Brokered Private Placement For $408,500
Never mind wrong Cerro Dorado since this one is in Peru!
News on Pegaso Nero sure has been quiet (edited with correct location as shown on slide 19 in post below)
What news ?
Pegaso Nero news? There has been no news other than the mention at the Informational Meeting:
CHG posted this as reported at the meeting:
Continuing the discussion from October 1st, 2016 Informational Meeting News:
The Alto de Lipangue property is too large to develop without bringing in partners, IMO:
For now, the Pegaso Nero is an exploration target.
Okay, i thought , there was new stuff that just came out.
Does anyone know, if there will be any drilling this year ?
Let’s hope Auryn gives us some good news this month on the 1st shipment.
Yes…that has always been the problem.
Medinah could have a cut a deal with a big major decades ago but the terms would have been mediocre. Juan etc always tried to go with the budget partner that offered good terms but lacked the massive kinds of capital needed for a multi billion dollar project that Alto will eventually become. It is clear that Auryn will do nothing further with the Pegaso until a deal is reached…so expect to hear nothing until a deal is considered final. It will be nice to see a name like Freeport McMoran associated with Auryn/Medinah.
Regarding drilling; hard to imagine that Auryn will do any more drilling anywhere on the Alto until a cash flow is well developed from the Caren.
Regarding the first shipment; about now is when I would expect to hear about the grade of the first shipment. If it wasn’t as high as they liked; I suppose they may choose to wait until the results of more shipments come in.
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Do you really think the grade will be a disappointments Mike ? I think, they wouldn’t have started production, if the grades had not been high enough.
Yes, I quite agree. The quickest cash flow, as is currently being performed, will come from developing the high content gold areas first. It has always been the goal to “self-fund” and move the various targets forward without a great deal of outside financing. Along that line of thinking, I agree progress on the Pegaso Nero will await a JV partner with “deep pockets” to spend money in order for the JV partner to gain an increasing percentage of the PN. More money will be invested by the JV partner as each stage of exploration is moved forward. Further drilling on the ADL will also be dependent on a cash flow from expanding operations on the production of the Merlin veins, as well as progress on permitting the Fortuna property toward production. AURYN is taking a very conservative, methodical approach to scale up mining operations. This is all occurring with the additional constraint of sorting out the legal efforts to recover as much as possible of Medinah’s shareholders’ value that was misappropriated by fraud and thievery.
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I have no idea.
The grades will either met expectations, exceed expectations or disappointment.
Another possibility, is that Auryn might feel that the first shipment isn’t representative and are waiting on the average of multiple shipments to give out a number. (Suppose the first shipment was 1000 grams/ton. This would get everyone very excited but probably it would be disingenuous for Auryn to put out a number like that unless they were very confident that is what to expect going forward.)
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Might make sense for them to sink a couple of holes at the porphyry target if it appears they are not getting the terms they want from the potential JV partners. Of course this is a bit risky. If you miss(which is very possible), this could hurt closing a deal. Of course, if they hit a 1000 meter intersection of 1%+ percent copper plus moly on the first hole, fun times will have arrived early!
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What about,the ones who bought or received illegal shares,can they create a kind of short squeeze, If they buyback the illegal shares they have sold, to avoid prosecution ?
Anyone here who can answer the question about a short squeeze?
Hi EZ,
My gut is that Medinah’s fate might be more inextricably tied to the Pegaso Nero than we might appreciate. At the informational meeting we learned that Freeport has been interested in the ADL for about 15 years. We also learned that one of their legal teams recommended that they cool their jets on proceeding until JJQ was out of the picture and now he is. Apparently this legal firm was less than enamored with JJQ.
If Freeport or one of these other 2 interested majors reportedly even larger than them were to get involved, then the size of their potential position in the overall mining district (not just the PN) would have to meet certain very high thresholds in order to justify their CAPEX commitments. These guys want expansion possibilities and “mine life”. I can’t see AMC willing to give up many of their remaining 65 percentage points in the PN or in the overall mining district to a player like FM. Remember Masglas owns 100% of their other 14 projects which FM may or may not have an interest in. I think they have their own sights on becoming a mid tier or a major miner and I doubt their stakes are up for sale. So where is this threshold stake needed by a major going to come from?
Medinah’s 28.6% stake in the PN and their 30% “equivalent” stake in the overall mining district (when you factor in their 37.7% stake in the 3,100 ha stake in the 4 Nuoco groups of concessions) just seems like it has a neon sign on it stating to a Freeport-sized player “take me”. If AMC were to go public in order to access the big money needed to become a major miner I think any IPO would go a lot smoother if a Freeport like player held Medinah’s stake than if Medinah did.
Excepting for the early cash flow opportunities encased in the Caren Mine, the Pegaso Nero is no doubt going to be the “flagship asset” for the ADL mining district. The case to be made for a very favorably vertically emplaced (shallow) Cu/Mo porphyry is beyond compelling after the soil sampling revealed over 4,100 meters of high grade moly RIGHT AT SURFACE.
Almost all porphyries are elephant-sized. The Cu-Mo porphyries like that at the PN are by far the biggest of all porphyries weighing in at an average of about 500 million tonnes (Cox and Singer). New mining discoveries are at a 25 year low yet players like Freeport that produce 4 billion pounds of copper annually need to replace their reserves constantly. The juniors with discoveries are getting snatched up as quickly as the mining world learns about them. Just in 2016, Kaminak was taken out by Goldcorp, Reservoir by Nevsun, Claude Resources by Silver Standard, Lake Shore by Tahoe Resources and Newmarket by Kirkland Lake.
I think the toughest assignment for us Medinah shareholders is going to be to keep the proper amount of focus on the mining developments versus the much more salacious inappropriate share issuance developments.
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For those of us who are big word challenged.
Inextricably
adjective
1.
from which one cannot extricate oneself:
an inextricable maze.
2.
incapable of being disentangled, undone, loosed, or solved:
an inextricable knot.
3.
hopelessly intricate, involved, or perplexing:
inextricable confusion.
Salacious
adjective
1.
lustful or lecherous.
2.
(of writings, pictures, etc.) obscene; grossly indecent.
Yes, word on the street in New Orleans is that Freeport (which used to be from New Orleans) was indeed interested in Medinah Minerals a few years back. Mere association of one of these big names will cause upward movement in the share price. Just my opinion.
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I greatly appreciate your review of some past discussions and current thoughts regarding the PN, as well as MG’s input. The PN plays an extremely important role in the future valuation of the ADL complex. I fully expect that one of the 3 interested parties will land an agreement and not want to pass up the opportunity to drill the first few test holes to see what’s there. Having three entities interested in gaining a foothold lessens the chances that drills will not be turning in the relatively near future. It would be a very small investment on their part that could provide a very large return.
While cash flow from the Caren could conceivably fund an initial drill or two in order to land a sweeter deal, I don’t think that will happen for one primary reason. MDMN needs immediate cash while continuing to effectively carry out it’s litigations. That cash is likely going to be received from allowing one of the interested contracting parties to receive a small percentage of MDMN’s AMC holdings. Possibly, MASGLAS may pay to have a percentage returned in order to simplify future contracts regarding the PN. Medinah is up against the wall regarding time before any expected dividends can reasonably be expected. Once the first phase of drilling is funded and successful in locating the CU/MO porphyry, I would think Maurizio Cordova will negotiate a standard contract for AURYN to receive a sequentially staged cash purchase and FCI of future production on the PN. This will allow AURYN to be doing all that is necessary in completing exploration of the ADL while exploiting the high content AU of the Caren and Fortuna, IMO.