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Re: Ex Blockman post# 4070

Saturday, 12/05/2009 5:53:55 PM

Saturday, December 05, 2009 5:53:55 PM

Post# of 9767
A Fairly Serious Question for CDCH and MDMN Investors.

I'm wondering about the relative interest of MDMN to CDCH in terms of the joint venture project at the Alto de Lipangue plateau.

Is there interest in the neighborhood of 50/50, 40/60, or 30/70? I realize the ratio won't be the only factor, as each compnay also has other holdings which will contribute to their individual prices.

The direction of my question is the relative value and ratio that we are seeing in the trading of the MDMN and CDCH shares.

From the information available on Pinksheets.com the outstanding shares of

CDCH are 192 Million,

while the outstanding shares

for MDMN are 631 Million.


If these companies are deriving their value primarily from their interests in the anticipated Alto de Lipangue plateau joint venture, then there should be some be some comparible value between the two companies.

Based on the issued and outstanding shares and their interest in the JV at Alto de Lipangue plateau their relative value should be:

If JV interest 50% MDMN /50% CDCH

CDCH should be trading at 3x's the value of MDMN.

If JV interest is 60% MDMN / 40% CDCH

CDCH should be trading at 2x's the value of MDMN

If JV interest is 75% MDMN / 25% CDCH

CDCH should be trading at around par to MDMN.

Looking forward to you thoughts and answers...

I think this is an especially important conversation because on Friday December 4 MDMN closed at .022 while CDCH closed at .031.

By recollection, CDCH has typically traded around 2x the value of MDMN.

Regards,

Randy



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