What percentages are given up in these " standard deals " if known?
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Depends on the economic value (size of deposit) and feasibility of exploitation, typical NSR of 1%-3%.
Because of our location and other factors I would expect it to be toward the more favorable percentage. The great advantage of such an arrangement is the longevity of income.
OK Thanks. Confirming Baldyās comment. As I recall from past discusssions the NSR, reflecting back on Docās comments, will be like sitting in a lawn chair at the smelter collecting our percentage. We get ours off the top without deductions for production or administratve costs. No longer equity owners, just annuity holders.
Whoās Doc? The ālawn chairā analogy is correct. Unfortunately, our piece of the pie has been dwindled down to crumbs. Auryn hasnāt done anything to advance the porphyries but we still only own a third (28%) of what we once did. Not to point out the obvious but assigning a 90% probability to a FCX JV is complete nonsense. I donāt think thereās enough data to generate that level of interest.
One can hope/assume that Auryn will be in a position to pursue a drill program after the more immediate opportunities yield cash flow. With additional drilling the bigger players will inevitably become more interested. We would have ZERO leverage in negotiating a JV at this stage. I hope and expect thereās no truth to those self-perpetuating rumors. Otherwise we will be getting 20% of a 1-3% NSR. Thatās not going to move the needle for MDMN with 3B shares outstanding IMO.
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You talk like you know everything. What are your sources. Iām sick of listening to your constant negative comments re mdmn,
All I can do is focus on what we will have which isnāt as much due to Les diluting us but Iām hoping itās something.
All
You do is constantly tell us how poorly mdmn will do and how great cdch will be.
All you did with cdch is talk to the Days who were in bed with Les.
(ā¦ Mod edit)
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Dent. All good points, I think. It would be refreshing if you offered an intelligent rebuke vs. juvenile dig to my position (caveat: thereās no anticipation for intelligence).
Needless to say, CDCH and MDMN are attached at the hip so one cannot go up without the other. Yes, CDCH has doubled while MDMN has continued to drift lower but that only means we are getting to valuation parity. I empathize with your position. It would be nice to pin our hopes on the self proclaimed perma-bull persona known as Mike Gold but, for those of us who are forced to live in the real world, itās important to focus on the realities of this investment.
Iām constructive on the medium to long-term prospects of MDMN but canāt pretend that any short-term solutions (JV with FCX) exist. If you canāt handle putting your shares in a sock drawer for a period of time without having an emotional meltdown thereās not a lot a message board, false persona, or inch of common sense will do for your clear āagitation.ā
Best of luck.
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How do you know?
I donāt and I havenāt spoken to anyone at either CDCH or MDMN for months but, considering the source, I put no weight on the proclamation. The odds are in my favor and I really hope that a JV is not happening because, as I said earlier, any JV would be a disaster at this point b/c we would have no leverage in negotiating terms given the limited amount of geo data. Weāll have to see how things unfold.
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Dent, the reality is if we opt for a short-term liquidity event (letās just call it), then we will not get a chance to tap into the āvalueā that we all dreamed of when we put our money into this investment. In my opinion, the best we can hope for is to try to develop the value as well as we can with our own money (ours and Aurynās of course) for as long as we can by plowing production money back into the project by drilling and tapping the mind and reputation of Mr. Sillitoe along the way. Auryn themselves spoke of possible production numbers in 2016 (5,000 ounces) and 2017 (25,000 ounces). I donāt think the mountain itself has changed since then - so it could happen going forward. In the meantime, maybe one or two of the projects could be the subject of a JV with a major, which could possibly give us a bump in the share price (FCX likes molybdenum, Iāve heard). Donāt know, but it would also be nice to realize some of that promised transparency weāve all been longing for.
Bubba and I are on the same page and the solar eclipse is happening on August 21st. Coincidence?
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Thanks BE and Bubba
We all want this to move. Lots of speculation, converting to Auryn shares, JVing part of the package.
Point is there are good guesses but nothing happens til it happens.
I think the 1-3% NSR would have been the result for us had Auryn not been in the picture. These men are miners with substantial wealth. They have expended millions of dollars and have brought in some of the mining worlds most talented mining experts. They are going to make sure they get the maximum benefit out of this mountain! Hard to believe they would settle for a 1-3% NSR.
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That sentence is bunk. Much more data than they already have and there would be a buy-out, not a JV.
Iāve been around since 2011 and am hanginā in like everyone else. Still hopeful but know a 3B share count is quite harmful.
On the bright sideā¦ Iām only down 93.27% on MDMN and 93.17% on CDCH !! Talk about parity ! I donāt know about their value but they seem to be equally devalued!
Thanks to all for the opinions and banter, its quite entertaining. Waiting on our ship to come inā¦ 
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There is very little exploration data on the Pegaso Nero by AURYN. The purpose of a JV on this portion of the claims is to see the extent and valuation of the claim by the interested JV party. Typically, all costs of drilling and exploration would be born out by the JV "partner. There would be increasing ownership percentages of the PN claim area earned in milestone stages as the pre-feasability study is determined, along with estimated mine life. The final stage would typically earn the JV partner only the PN mining claims in exchange for a percentage production NSR to AURYN. This is not a buy-out scenario, IMO.
The remaining ALTO claims are a separate consideration.
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You miss the point, There is an enormous about of information gathered about the geology on the mountain. At one point time, nearly 2 dozen major mining companies were interested in the Alto. This was before Auryn did extensive work on the Plateau that outlined the complete intact epithermal system that surely overlies porphyry systems at depth per the various geological models.(Not to mention that was before they drastically expanded the claims area and fixed all the problems with the mining claims themselves.) The dating of the rock that links the age of the deposit to the same era of the Andocollo pretty much seals the deal. Happily, the Majors are a lot smarter than most Medinah shareholders and will have no problems connecting the various dots of geology data that points to only one conclusion. They will probably start at the Pegaso then move on from there. The traditional drilling season starts Mid-September so hopefully that is when we will start hearing about some more exploration action on the mountain. Look for an JV announcement from Auryn in the near future.
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This is exactly why AURYN has announced it plans to IPO in some fashion. Much too early for AURYN to have a buy-out at this stage, rather than parcel out a JV or two, and continue moving toward exploitation of hi content AU ore to a profitable self-sustaining stage, IMO.
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[quote=āBaldy, post:235, topic:1956ā]
The odds are in my favor and I really hope that a JV is not happening because, as I said earlier, any JV would be a disaster[/quote]
Obviously, you were not at the informational meeting in Las Vegas last Oct 1:
ā¦ and you donāt know the odds, because this is exactly what was being discussed for the PN! Your hopes are not in alignment with what management was presenting. Maybe you just werenāt making your thoughts clear. I donāt know where you got the idea that the entire project would be JVād out to a single major at this point in time. Perhaps we should all chill out until there is further news regarding the next phase of exploration, or until we all have shares allocated via an IPO into a new AURYN free-trading company. I do agree the medium to long-term prospects are what we as investors have in store to look forward to (not much in the way of short-term). It seems management has a two year or more timeline in mind before the exploration, exploitation and a possible JV for a portion of the claims starts returning a significant ROI for shareholders.
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Auryn has partner(s)ā¦bank on it.
The worst thing at this point is for them not to have had partners. We all want Auryn to be worth something after IPO. For that to happen, the mine needs to generate a lot of cash flow and exploration needs to kick into high gear. Auryn doesnāt have the capital to do this on their own or they would have already done so by now. (Any funds from the IPO wonāt do the trick either.)
The dilutive effects of additional partners is more than offset by the shear size of the deposit(it can be cut up into a lot of slices with each slice having enormous value.) and value added by aggressively defining/developing the resource. Letās not forget just what a world class deposit in a prime location is actual worthā¦billions and billions and billions. We will all grew old and grey waiting to recover from our losses(or gaspā¦make some money) developing the mountain at the rate its been going. Time to kick things into high gearā¦
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From Baldy pessimism to Mike Gold optimism, there is something in between.
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