From Medinah’s Amended Annual Report, ending December 31,2017
“Medinan owns a 23.559% equity stake in Auryn Mining Chile SpA.” Other than this equity stake, we have no business operations that will generate a flow of income to our company.
To our knowledge, Auryn has not put any of our mining claims into production, except the five loads from the Caren that were sent to the enami for processing. We are still waiting for Auryn to tell us the value of the processed ore. We have seen our percentage of Auryn diluted from 26.469% to where it is now, 23.559%
The annual report again states: ”As a minority shareholder in Auryn, Medinah’s right are limited. Medinah is responsible for its pro-rate share of Auryn’s capital cost. Medinah’s ownership in Auryn is subject to dilution should Medinah not be able to meet any cash calls. Since Medinah has about $2,000 on our balance sheet, any cash call from Auryn will further dilute our percentage of Auryn. If Auryn hits us again with the cost of any major production cost, it could finish our company. Since the conversion of Medinah stock to Cerro stock has not yet been finalized, we are still very vulnerable and I believe this is why Maurizio has not put the mining claims into production. With empty pockets, we cannot meet any financial demands.
What also need to be taken into consideration is how will Cerro meet any demands for funding once the exchange takes place? As far as funds available for expenses, Cerro is no better off than Medinah.
What also concerns me is we have not been provided with any information of what the prior charges were for or what they may charge in the future. We are totally at their mercy for future dilution. What about the recent payment of taxes on the Alto claims? Are we going to be issued a cash call to pay our percentage of those cost?
I am still waiting for the transparency that Maurizio promised!
