Easy,
I understand where you’re coming from in your posts, but I don’t think you really appreciate how decimated MDMN really is. MDMN currently needs money to pay its bills - primarily legal at this point, but it has debt on its books that needs to be addressed as well. The company has no cash and no shares to use as currency. We’re lucky that Kevin is fronting his services as the CEO and Communications Director, and that he knows how to develop and maintain websites. If only he had a law degree and was a CPA we’d be practically set. I don’t know how Medinah is currently paying its legal bills, but the previous rumor was that Greg Chapin was helping out in that regard. I cannot corroborate that, but someone is paying the legal bills on MDMN’s behalf, but that won’t last forever. MDMN was also lucky enough to have AHC front them a 0% loan. I think this was a complete surprise (and a godsend) to just about every shareholder. I don’t know half of the other financial stresses the company is currently facing. But this is the financial backdrop no shareholder should dismiss or take lightly.
Meanwhile, Medinah has to cope with 4 lawsuits. Regardless of the apparent frivolousness of the ones MDMN must defend, the outcomes and pursuit in these cases is probably more critical than anything going on down in Chile right now. Unless someone (other than Auryn) is willing to cough up money to keep the lights on and defend Medinah in its legal issues, the company’s days as a going concern are numbered. This is the mindset from which I’ve formed my opinions on what the best course of action for the company is going forward. However, I will defer that to Kevin and the fraud investigators who are intimately familiar with the situation at hand.
Down in Chile, Auryn is going about its own business of mining and they have their hands full with their own objectives. It is my assumption that they probably would rather not have an entity like Medinah with all of its baggage “interfering” with their plans to monetize the ADL, but MDMN was a necessary evil due to their ownership of ADL at the time. Medinah’s existence is not their obligation or priority, but due to Kevin’s relationship with Maurizio et al, and due to Auryn/;MASGLAS also having an investment in Medinah, I’m guessing they do have a certain vested interest in seeing it survive.
But Auryn has their own bills to pay, their own visions of expanding exploration, their own debts and their own investors to take care of. They need to start getting short-term revenue to allow them to stop the bleeding as well. Given that, I’m fairly confident that revenue distributions to shareholders is not a current near-term goal of theirs. So that means that MDMN should not be expecting near term revenues from ADL either. I hope I’m wrong, but I simply don’t see it that way.
You know why I keep repeating that “mining is not easy” and “nothing is guaranteed”? Remember how all those NUOCO investors were betting on the LDM glory hole? How did that work out for them? They were duped by a nugget. So were all the MDMN investors (myself included) who made armchair projections based on that as well. Remember Auryn had projections of 5,000 oz in 2016 and 25,000 oz in 2017? That hasn’t quite worked out yet either. And so we wait and continue to incur expenses to KTLO. This is why the longer MDMN tries to keep treading water, the riskier the investment becomes…if that is even possible.
You mentioned the $2 million debt to AHC as an incentive to keep MDMN solvent until it becomes payable in 4 years. Understand that this was pretty much a gift from AHC to MDMN to keep it solvent now. That $2 million loan will be paid off as soon as it is feasible IMO…whether that comes in the form of Auryn shares from the IPO (regardless if MDMN converts its shares to Auryn or not IMO) or from revenues. I personally don’t see that loan as money MDMN can float while it figures itself out. You have to have pretty big cojones to accept a 0% loan that was gifted for your survival and then carry it the entire 4 years while you have the means to pay it off. And don’t forget, Auryn carries a 50% representation on the MDMN board, so in that respect I see them paying off that loan sooner than later, regardless of what MDMN shareholders want or think is best for the company from the backseat.
IMO MDMN does not have the time or resources that allow it to risk its very survival while it waits for Auryn to progress on ADL. You may not agree (I’m guessing you probably don’t), but MDMN shareholders will have a safer and more liquid investment as direct owners of Auryn for all the reasons I’ve already stated in this and other posts. To have MDMN float around in the non-reporting pink sheet abyss with a dismal share structure, debts to pay and waiting for Auryn to come through on the ADL is just an unnecessary, fool-hearty, wasteful risk to its survival.
