HR, how does this cash call stack up to the news release where Medinah agrees to cancel the option agreement and take an equity position in a private co with an unknown valuation.
There are so many ostensibly valid reasons proffered by Medinah's management as to why the new agreement was so much the better way to go.
Really, it would take too much of my time to go through all the details of the "good reasons" for the conversion of the original $100M option agreement to the 25% equity in Auryn, a privately held, as yet with no verifiably known valuation. So many questions and still no answers, at least not sufficient for comfort for Mefinah SH.
On the surface, it appears Medinah's 25% equity in Auryn could be worth north of billions of $$$ in five years. That's if the strike price for 5M shares of the option agreement to purchase Auryn shares in five years is still worth $10 or more per share, as the $50M strike price implies.
If Auryn was well capitalized, as the new agreement stated and implied, why the need for this cash call now?
I guess since there was no other way to go, Medinah's share holders were so misrepresented by previous management and friends that Auryn was the only partner left to dance with before the night was over.
Until this whole saga is substantially wound down or real mining operations begin and Auryn banks real money with real revenue from real mining, there is no "there, there".
Meanwhile All (reference made to Les and minions) had fun and ill gotten gains on the backs of trusting Medinah's share holders who were duped into putting up real money.
What a crime!
