The Mining Play

Medinah Minerals (MDMN) - 2017 Q2 General Discussion


#377

My best guess is 500M shares based on discussions with management and the fact that most of the private placement shares were sold looooong ago. It becomes almost impossible to go after all of these bad actors unless you want to spend the next 5 years and a lot of money doing do.


#378

deleted by poster


#379

Why wouldn’t they?

I don’t think you’ve been speaking to the majority of shareholders (those who own the most amount of shares, can’t speak to headcount)


#380

How long would it take AURYN and CDCH to do some kind of a merge and ticker change? Does CDCH need 2 years of continuous current filings before this could occur? Where would this leave MDMN shareholders waiting for this to occur and AURYN to become free-trading? Regarding all the talk of using the “easy” (read cheap) method of CDCH as a shell for AURYN to “reverse merge” into Cerro with a simple ticker change there are several good reasons not to use this method, especially if AURYN is successful in obtaining approval of it’s F-1 application which it announced and "advertised it’s intention to do. The number one concern I would have are reputational concerns due to legacy risks from the shell which may include fraud and other abuse.
Do recall this article:

Still exploring
From north to south, Auryn has identified almost 2km of veins on the property and the company aims to explore all of them. The process could take 18 months but if they discover the high-grade veins they are looking for, then the company will set up a new team to drill an exploration tunnel while the rest of the personnel develop production veins.

“We have built three shafts and theoretically we have seven levels above and six levels below. We could have 15 work teams and all of them blasting at the same time,” said Cordova.

With two blasts daily, the mine could advance around 90m a month. This rate of work would significantly increase production costs, but it remains an option “as long as it is for production.”

At Altos de Lipangue, the company is aiming for significant production volumes but with a careful management of costs. To assess the business model and develop a plan, the company has hired the geologist Raymond Jannas (a director at Revelo Resources) as an advisor. “We want to develop the veins and generate the cash-flow of a small-scale mine, almost artisanal but still significant,” said Cordova.

Interest from majors
The project has already attracted the interest of some major mining companies. Representatives from Freeport-McMoRan (NYSE) were recently on site to assess the Pegaso Nero and Dos Marias targets, where the presence of molibdenite and tourmaline breccias could indicate a porphyry system. The companies have signed a confidentiality agreement.

Going public
Auryn could go public later this year, listing shares in the US as a Foreign Private Issuer. It has already begun procedures to list its shares on OTCQX and OTCQB.
http://aurynmining.com/wp-content/uploads/2016/01/Chile-Exp-Rpt-Mar-2017.pdf

Although an F-1 application route is a little more costly and rigorous, it allows AURYN a clean path to initially be listed on the OTCQB® Venture Market having it’s own ticker. Eventually, once it advances to a profitable mining stage, AURYN will move up to the high standards of the OTCQX® exchange. AURYN has shown itself to be a conservative, careful, long-range planner and I believe the management will strive to maintain integrity and reputation.


#381

It would be a joke to put a World Class asset into a tainted penny shell. What kind of impression would Auryn make doing that? I suppose if they need to get listed on the cheap…they could go the Cerro route. I see no reason for that. I can’t imagine that they will go Public without a positive cash flow from the Caren. If they have the cash…why go the cheap route?


#382

Well lets hope we here from Auryn soon what there route is. If they want to raise money and they want to do this by the 4th quarter IPO see (Auryn release) I suggest they start releasing some info. Time is ticking


#384

As long as the shell and books are clean if/when they reverse merge, then the history of the previous company is immaterial. The company name and symbol would change to reflect the current company and they would most likely be applying for a higher tier on the OTC. CDCH will be a distant and inconsequential memory after that, other than it being referenced in filings under the history of the company. This happens all the time with reverse mergers even with completely unrelated businesses that merge.


#385

Rick, I can understand the distant wind blowing the stench of the fraudulent past away. The fraud has cost many investors to lose more than they could afford that are no longer with us. But really, how long would it take AURYN and CDCH to do some kind of a reverse merge and ticker change? Does CDCH need 2 years of continuous current filings before this could occur? I could be wrong, but I don’t see MDMN nearly as ready to have an AURYN distribution of any kind until the legal suits are cleared off the books. MDMN is likely to stay illiquid for quite a while under current circumstances.

I fully anticipate CDCH moving to update it’s filings to become current and remove the OTC non-reporting status. I would think that the F-1 filing, if successful, would be the quicker route to getting AURYN free-trading, which is a major goal for liquidity and shareholder value. Once AURYN becomes free trading a NOBO list of CDCH shareholders could be ordered for shareholders to directly receive a pro rata distribution of AURYN shares. CDCH would then truly be an empty shell with nothing on it’s books. CDCH would be free to use the shell to pursue other opportunities (think MASGLAS). This leaves more possibilities for CDCH shareholders to have much greater liquidity if shareholders have free trading AURYN shares in their account sooner, rather than later, IMO.


#386

The shell and books are not clean and hard to imagine they will be for quite awhile until all the Les mess is resolved. Meantime, Auryn is suppose to be going forward with an IPO in about 4 months?! Any action with Cerro will delay things into 2018.


#387

I do not know how they are handling things, but have been told that the planned public offering is on schedule. Any conversions may be another story. I think both CDCH and MDMN both have some work to do to be able to accept any offerings.moo


#388

As I have said before with almost certainty AURYN will NOT roll into CDCH.


#389

We can add this to the endless amount of other erroneous declarations you’ve made In the past. You will make my weekend if you could show me one post where you made a correct prediction. As the late James Ingram would sing: “Just once”


#390

Auryn is a professional company run by businessmen. They will take an efficient and cost-effective route towards an IPO. If cleaning up the books of CDCH requires less money and work than the alternative, they will consider this option and could very well proceed down this path. I would bet that Auryn has a whole army of lawyers looking at various prospects and they will make the best decision for the company. I don’t know if this means they will use the CDCH ticker as a means to begin trading on a public exchange but they might. Why don’t we all let Auryn do their work and let things play out.


#391

Well,

Auryn has already made this statement:

“AURYN is pleased to announce that it intends to provide increased liquidity to its shareholders by accessing the U.S. capital markets as a Foreign Private Issuer. Our intention is to file an F-1 with the U.S. Securities and Exchange Commission and become a fully reporting company. If our registration is accepted, we anticipate an initial public offering of our shares on the OTCQX® or OTCQB® tier of OTC Markets sometime in the fourth quarter of 2017. Further details will be provided as they become available.”

It was quite clear that their plans at that time had nothing to do with Cerro.

Its only some Cerro shareholders hoping that Auryn uses them as an investment vehicle that have brought the topic up for discussion/speculation.

Now, before I incure the wraith of the Cerro folk…don’t get me wrong. I am delighted with the turn of events for Cerro. I still have many friends and even relatives that have shares in Cerro.

However, with the conversion of Medinah shares into Auryn shares a certainty at some point, I’d rather see Auryn make a fresh start with a new investment vehicle just how they previously outlined in their February news release. Going with the Cerro shell will be a disappointment and a mistake IMO and will reduce the market capital out the gate and outside investment appeal versus an IPO.


#392

I can say the same for your posts…just like the “Days were exceptional people running CDCH”. How is that going for you or any CDCH shareholders?


#393

I’m glad you asked although I find it odd that you point to a topic where I was actually right. I’m sure you could find many other of my ideas that turned out to be wrong.

Even though I never said the Days are exceptional people, I did make the claim that I trusted Patrick to do the right thing and, what do you know, he just did. All of the preferreds were returned without a fight and now CDCH clearly represents a more attractive, pure plan on AMC

How’s it going for CDCH shareholders? I guess it’s all relative as there aren’t many happy holders of MDMN or CDCH but, to answer your question, I feel a lot more comfortable with my holdings in CDCH at the moment (as I predicted previously).


#394

They also said we would be in production in the 4th quarter of 2016 and ramping production throughout 2017. Things, inevitably change.

As it relates for “hoping” that AMC reverse merges into CDCH. This isn’t an event that would have any benefits to Cerro one way or another. For those who understand the capital markets, it just makes more sense. An IPO does not.


#395

It will be interesting to see if Auryn associates invest in cdch if all clears ok as heavily as they did in mdmn


#396

Looks like the majors are figuring out how to make operating costs more in line with those of surface mining:

Mining a Mile Down: 175 Degrees, 600 Gallons of Water a Minute

Rio Tinto plans to deploy tens of thousands of electronic sensors to help operate its deepest underground mine to date

Rio’s Resolution copper mine, more than a mile below ground, contends with constantly dripping water and temperatures nearing 175 degrees.

By Steven Norton, Wall Street Journal
Jun 7, 2017 8:01 am ET

SUPERIOR, Ariz.—One of the world’s largest untapped copper deposits sits 7,000 feet below the Earth’s surface. It is something operator Rio Tinto PLC wouldn’t have touched—until now.

Not that long ago, an abundance of high-grade copper could be mined out of shallower open pits. But as those deposits are depleted and high-grade copper becomes tougher to find, firms such as Rio have been compelled to mine deeper underground.

Advances in mining technology are making that possible—just as developments in oil and gas drilling heralded the fracking revolution. Now, using everything from sensors and data analytics to autonomous vehicles and climate-control systems, Rio aims to pull ore from more than a mile below ground, where temperatures can reach nearly 175 degrees Fahrenheit.

“Copper has just become a lot harder to get, and we’re relying on technology to keep dealing with that decline in grade,” said Craig Stegman, Rio’s vice president for operational and technical support for copper and diamonds.

The company bets the Resolution Copper Mining project, a joint venture in Superior, Ariz., between Rio and BHP Billiton Ltd., could one day supply a quarter of U.S. demand for the metal each year. It plans to spend $6 billion to $8 billion on the mine, which the company hopes to bring into operation in the mid-2020s, when a lengthy approval process is expected to end. That includes completion of an environmental-impact statement, a process managed by the U.S. Forest Service.

Pumps remove 600 gallons of water a minute from Resolution’s No. 10 mine shaft.
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Rio expects Resolution will be one of its most advanced projects because the company can design the mine with the latest technology in mind, rather than retrofitting it after the mine begins operating.

Most of the world’s copper is extracted from open pits at the Earth’s surface, according to the International Copper Study Group. Some mines are deeper than the Resolution mine, but this is Rio’s deepest underground mining project to date. While a deep underground block-cave mine costs much more to develop, Rio says it can match the operating costs per ton of ore of a surface mine, partly because it’s so mechanized.

“Because Resolution is so deep and so hot, it’s really going to push the envelope of technology,” said Mary Poulton, professor emerita of mining and geological engineering at the University of Arizona.

As with the development of new hydraulic-fracturing and horizontal-drilling techniques to extract oil from shale-rock deposits, locating and extracting the copper successfully requires deployment of new technologies such as cheaper, more powerful sensors and breakthroughs in the use of data.

“Whoever gets underground and figures out technology for underground is going to be ahead,” said Theophile Yameogo, a partner with Ernst & Young LLP’s mining and metals practice.

A 15-minute elevator ride 6,943 feet down Resolution’s No. 10 mine shaft leads to a dimly lighted cavern where warm water falls from the rocks like rain. Electrical gear buzzes constantly, and a network of pipes pumps water out of the shaft at the rate of 600 gallons a minute. A ventilation system cools the area to 77 degrees.

Over the next few years, Rio plans to deploy tens of thousands of electronic sensors, as well as autonomous vehicles and complex ventilation systems, to help it bring 1.6 billion tons of ore to the surface over the more than 40-year projected life of the mine.

Data coming from those sensors will be fed into analytics engines that will help monitor tasks ranging from underground blasts to the movement of autonomous vehicles.

To monitor safety, sensors juggle many different kinds of data.

To operate the mine, Rio’s systems will juggle terabytes of data from extra-durable sensors and other sources in the mine. When monitoring safety, for example, it has to track rock movements during the mining process, keep vehicles from running into each other and ensure human employees aren’t overheating or inhaling too much dust.
Rio hopes analytics will help to break down organizational silos. Rather than one person viewing data about a specific part of the mining process, information from across the mine can be sent to a single place where experts can obtain a more holistic view of operations.

“It is taking a lot of the decision-making out of the hands of the operator and putting it into a group of specialists who can manage the whole system,” Mr. Stegman said. Rio will test some of these systems at other mines before deploying them at Resolution, but the company doesn’t have another project operating at Resolution’s depth and temperature.

Rio is working with manufacturers including Caterpillar Inc. and Komatsu Mining Corp. to build battery-powered electric loaders and other equipment than can operate in the mine’s underground tunnels.

Sensor data will travel wirelessly to a central database on Rio’s network. That data exists in a number of systems, including CaveCAD, Rio’s proprietary underground-mining information-management system. Equipment information is housed in a system underpinned by SAP SE, and third-party software tools manage ventilation and water information.
“The challenge is how we integrate all of this data,” Mr. Stegman said.


#397

Totally agree. So few people have even heard to CDCH that it wouldn’t matter.