Medinah Minerals (MDMN)- 2017 Q4 General Discussion

a reminder that our percentage holding in Auryn applies to their entire portfolio of properties and projects, ADL and beyond…

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This appears to be the area 3 km directly North of the Alto:

I would hope that Mr. Cordova would be managing this acquisition under the MASGLAS umbrella of properties at the present time for later incorporation into AURYN. AURYN has enough to keep it fully engaged on the ALTO until there is substantial cash flow from the near term exploitation targets. IMO
At least let’s see what news gets released in Q4 before biting off more than can be handled without another cash call. To Mr. Cordova’s credit he stated, “Auryn Mining aims to achieve signicant production, but with careful cost management.”

Apologies, in retrospect, shown below is likely (or could be) the Princesa Caballo (not my first PICS shown above). It also lies 3 km North of the ALTO, has a smaller footprint with an acess road directly running through the ALTO, and very visible activity. It is on the opposite side of the mountain than the first PICs I posted:

We will just have to wait for news to see what is going on.

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So, if we own 27.5% of Auryn…We will own 27.5% of whatever Auryn may have recently purchased or might eventually purchase in the future. Good or bad. Is it as simple as that? And how does Masglas fit into that equation?

MASGLAS? - Anyone’s guess at this point.
It needs clarification promised to be updated sometime this Q4.
Mr. Cordova has several roles, not solely in AURYN, as last demonstrated under “Notifications” on the AURYN website when thanking Kevin. It was signed:

Thank you so much.

Respectfully,

Maurizio Cordova
MASGLAS Limited
AURYN Mining Chile SpA
AURYN Holdings Corporation
American Sierra Gold Corp.

also, at Chile Explore Mining Congress:

We need to remember that any acquisitions done by AMC will most likely be paid for with shares of AMC. Which means our percentage ownership in AMC ( as well as all other owners of AMC ) will decrease, while at the same time our asset base will increase.

We will own a smaller percentage of a bigger pie. We have to trust that these acquisitions will add enough value to justify the dilution we will experience.

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First it depends on how the acquisitions are done, Cash, Eguity, Debt, and/or any combination .

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We own right at 27.5% of Auryn whether or not if they use shares, that doesn’t change. Easy’s post pointed out as to what would effect us, If Auryn would use capital gains to purchase properties instead of using capital gains for a dividend, now that would effect us.

Easy, I was wondering the same, if they would purchase using another company.

Currently we own 27.5 million shares (27.5%) of Auryn. As an example, if Auryn issues 50million more shares to acquire another asset, the outstanding of Auryn would now be 150million shares. Our percentage ownership would drop to 18.3% ( 27.5/150).

For illustrative purposes, if Auryn was worth $100million prior to the acquistiton, our 27.5% was worth $27.5million. After the acquisition Auryn would be worth $150million. Our 18.3% ownership would still be worth $27.5million ( .183 X $150million ) but we we would own a smaller piece of a larger company.

That is certainly one possibility.
It’s also possible Auryn has been producing and generating enough revenue to be used for acquisitions

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GCC,
Regarding AURYN and the Princesa Caballo …
We first heard about AURYN’s interest on a property just North of the ALTO at least a year ago. No name was mentioned back then. I’m thinking AURYN picked up the required exploration fees/permits ($5-10K) and has an option to purchase if the property should prove up over time. This would be structured through AHC. I don’t think they have much cash tied up there, other than the cost of exploration. Maurizio seems to like very low cost or cashless deals such as an option to purchase in order to “buy time” on a claim. If the property turns out to be economically feasible, then it will be an added asset to AURYN. Time will tell. I’m puzzled about what is going on with MASGLAS, though.

I’d also point out that the claims area has been stated to be 10,500 ha for a long time. In the recent article it appears that our claims now comprise 11,000 ha.

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As you point out, that is an example of one possibility. I would favor another possibility that I had posted about some time ago. I would hope AURYN would use a non-dilutive approach to retain ownership control as currently structured.

If AURYN goes the F-1 route to IPO as announced and becomes free trading, there are certain rules that would need to be followed under it’s own ticker, thus responsible for much of the silence we’ve experienced, especially if we already have a JV partner. I won’t go into great depth on it as regulatory links have previously been presented several times in the past.

If the F-1 application is accepted and an IPO issued, it leaves the door open for having two classes of shares, not necessarily restricted to the current 100M share structure of the private company, which would (could) become the restricted control shares. The number and price of free trading IPO shares would be priced by an Investment Bank, which I’m sure AURYN has contacts with. Ideally, dividends or a buyout of Medinah’s and Cerro’s shares would occur well after AURYN becomes fully reporting and climbs from the OTCQB tier and moves to the OTCQX tier sometime later. Once on the OTCQX they would automatically have access to the international markets which I believe is AURYN’s eventual goal. AURYN is cautious, methodical and plans carefully for long-term success, IMO.

Alternatively, under a similar arrangement, the share structure is kept at the original 100M shares (keeping it simple – 70% AURYN, 30% MDMN and CDCH. As an example, after determining a valuation for the assets of the company, an offer of 50M shares for the initial public offering could be made to various institutional and individual investors for $1 each. (Half of all stock could be used for the IPO and freely traded, whereas the original equity owners would retain the other half.) Withholding 50% of the shares from the public allows the original equity owners to share 50% of the asset (not publicly offered) among them pro rata retaining majority ownership and control.

Cash is raised from the IPO and these shares are freely trading. Say the IPO raises $46.5M ($50M from stock sale minus $3.5M (7% discount) to underwriters). The raised cash is distributed among the equity owners.

There are many advantages to arranging going public in a fashion with two classes of shares where present control ownership is non-dilutive and allows MDMN and CDCH to continue as holding companies until such time as AURYN is free trading under it’s own ticker and showing a very substantial profit and growth.

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I know I mentioned a few times in the past that before Auryn Shares get issued directly to MDMN shareholders and MDMN is dissolved they still need the clean up one remaining lawsuit, MDMN debts and the rest of the MDMN balance sheet. I know we still have an option to acquire another 5% of Auryn for $50M, plus we own some shares in CDCH and AMNP. So one might consider that by the time we get to the point of dissolving MDMN and distributing Auryn shares directly to MDMN shareholders that our purchase option, plus the shares we own in CDCH and ANMP might be worth $2M and to the settle the debt we simply trade off these items. Just a possibility to consider.

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As a general observation and FYI, MDMN’s currently percent ownership in Auryn is 26.5% not 27.5%. I know I’ve been guilty of using 27.5% myself.

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Note that the 26.469% number isn’t adjusted for any shares of Auryn that Les may have(or should have) returned since Medinah issued the last financial report. Also, does not include the Auryn shares through Medinah’s ownership percent of Cerro…so perhaps the 27.5% is closer to the actual total.

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A good, Late, friend of mine passed away and his widow has decided to sell a few million shares. For the boards information only. That is where the ask is coming from now for awhile in the near term. FYI. I’m not sure she has an adviser for this selling.

She should keep them a little longer, she probably wants the money quick and have no knowledge of stock trading.

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Sorry for the loss of your friend. That wife is not the only one who wants to cash in shares no matter what

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Sorry to hear about your friends passing.

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Really. She just lost her husband and you make a comment like you did. You should be ashamed.

I am sorry for your friends passing. I wish her and you all of the best in this difficult time.

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You are right and I corrected the post. My apologies.