Medinah Minerals (MDMN)

[Hurricane_Rick]

Assuming Auryn is legit and they want to own the company then the lowest possible share price benefits them. Why pay 5 cents/share when you can let the price languish and pay 1 cent/share or even less.

Well, there are 150 million shares that have been purchased by Auryn board members and associates at an estimated .075 average share price over the last year. I'm guessing they want to see a bit of a profit on their investment, or at least break even. While their shares contribute to the control aspect of Auryn, I'm not so sure the board members and associates of Auryn would be willing to take a personal loss for team Auryn just so the company can get shares on the cheap. That being said, they can always cost average down.

At this point, they have 2+ years left on their option to purchase...why not depress the share price and then make a tender offer at the lowest possible buy out price.

The lowest possible price has to be at least .074 + the value of 15% of ADL. Remember there is an option agreement in place whereby there is no transfer of claims ownership from Medinah Minerals Chile to Auryn unless they pay $100 million and exchange 15% of the shares in Auryn Mining Chile. At the very least this is the baseline from which fair value can/should be measured. Given Roberto Letts' involvement on both the MDMN board and the Auryn board, it is likely (and responsible) for Auryn to undertake a 3rd party fairness opinion on any such deal. Regardless of MDMN's arbitrary share price, given the agreement in place it would be difficult, if not impossible, to claim that ADL's value (and by virtue MDMN's) is anything less than the baseline agreement in place...unless of course drill results completely suck. But then why would Auryn buy a property if the drill results sucked?

They are holding all the cards, including any insider information on what the exploration has uncovered.

Well, they aren't holding JJ's 350 million+ shares, they don't control MDMN's board or majority shares, and they don't own the ADL claims and are still subject to the terms of the option agreement. But, JJ (and Medinah) are definitely not in a position of strength here, and the animosity between Auryn and JJ are definitely creating a roadblock to progress.

It looks like Auryn is playing hard ball and team MDMN is woefully outmatched. Welcome to the big leagues boys, too bad all you have is Les Price and a geriatric pear farmer in your corner.

No question.