[Investors are welcome to invest in those companies if MDMN does not fit their risk/reward appetite. As I stated in an earlier post, I invested in MDMN knowing full well of their reporting status and the inherent risks associated with it. Shareholders that are looking for a fully reporting company to invest in obviously shouldn't step near MDMN]
Rick,
I find this statement disturbing in the least and totally skirting the real issue as to why some "investors" jumped into MDMN.
At the much touted and heavily anticipated AGM in Feb of 2012 the esteemed members and the illustrious leader, and other seemingly large stake holders of MDMN stock appeared in public, put on a dog and pony show to persuade hundreds of shareholders that MDMN had struck an agreement to sell 1508 claims of the ADL for $180M cash, albeit with terms, with a 15% carried interest to the benefit of the shareholders of MDMN and Medinah Chile. We were told that the buying consortium would pay $18M cash per year, and Medinah would be the beneficiary of a potential bonanza, if and when the buying consortium successfully mined the full potential of the claims, in copper, silver and gold deposits. Further, (no need to go into the numbers), but even the amount of the estimated dollar value of the three major metals present at ADL were clearly enumerated, which totaled in the several Billions. I believe that was the summary of the deal.
Here were from all appearances, fully sane, clearly in control seemingly honest and totally in charge types, by way of JJ, and others, who made the statements that the deal was done, done, done. Of course, the proviso was, and in a deal, always is, the deal is completed when the funding hits Medinah's, the seller's account.
However, after the fact we discover that the methodology used in carrying out the duties of those stewards of the assets of Medinah is less than legitimate, on the face of it all, as well as in even a cursory analysis.
Let me give you the reasons why. 1. There is and was no legitimate reason for our team, JJ et al. who negotiated this incredible purchase/sale agreement to agree to a NDA in the first place, and 2. make such a protracted and weak agreement that dragged out for almost 18 months.
When our team began negotiating with an entity our negotiators should have completed the negotiations in total secrecy, (if they felt it was the prudent way to go) fully complete the transaction, collect the funds, deposit the required funds of the seller into Medinah's account, again in total confidence, and when both parties completed their respective duties to each other, lift the NDA, and make a clear and unfettered announcement that the deal is done, done done. Not until both parties fully lived up to their respective duties, and the funds were collected in good funds and other duties of the buying consortium were fully discharged should our team have made such an assumption that this transaction would one day in the future be completed. It is my opinion that this entire transaction negotiated with this Ulander was done in total negligence at best.
2. What is and what was the benefit of keeping the identity of the buying consortium confidential? Do you see a legitimate reason? I don't. Especially as the BOD had reported at the AGM that the deal was done, done, done. Why keep things under cover when the deal was done. Give the full details of the transaction out to the public. What is so sacred about the terms as negotiated and signed by both parties?
3. When the delays in funding occurred, why leak out tid bits of information through shills to the general shareholders, of all sorts of rumors and promises of the payment being imminently received by Medinah and other fluff?
4. Why make ridiculous announcements in q & a's of funding for the exploration has been increased from $5M to $6.7M (approximate numbers) as now the claims are even richer than originally estimated, when obviously, there was no intention on the part of the buying consortium to make good on even the initial deposit funds for the stock that was put to the buying consortium. Continued announcements that the BOD had verified that the funds for the exploration were located in Chile. What does that mean?
5. Why agree to have such an extended drop dead date, over 18 months beyond the done, done done announcement, when there were other suitors who would have performed if this consortium failed?
6. Why get into bed with a purchaser who had not mined a single gram of any metal? Since Medinah owned those 1508 claims, and under that ownership could not raise even a red Chilean Centavo to explore those claims, why give a non mining entity such as Amarant the cover to go out in the financial markets and raise $75M, of which funds none were delivered to Medinah. Why Medinah could not raise those funds on the strength of the estimated Billions in metals, and this non entity with a person at the helm who has a questionable past take 85% ownership of our claims, and go out and raise $75M?
7. When the buyer did not perform the distractions started to be sent out. All of a sudden, LDM became the much sought after prize, even trumping the potential of the ADL. Why, we were told our team of negotiators were absolutely brilliant not to include the LDM in the purchase/sale agreement with buying consortium. This buying consortium was given first rights to purchase the LDM, again adding to the fluff that we, the shareholders of Medinah still held the best property.
The spin started, and went on and on. The reasons why share prices were not reflecting the value of the assets were because of the short sellers. The sp would explode once the Bogdan case was resolved and Bogdan would have to go into the market place to replace JJ's shares.
The buying consortium would fund this week, next week were the bones thrown at us on a regular basis. The ridiculous fluff q & a's kept us in the game. And each time when it appeared the game was over, the spin would start again. As late as a week or so prior to the notice to the buying consortium from JJ, they were sending signals that the buyer was coming through with funding. In fact, I believe you even stated that Ulander contacted you as well. If I am mistaken, I apologize on this point.
At this current share price, there is no longer much good news coming out. The fluff has stopped, for a while. Now we are to believe that there are buyers out there who are preparing their bids. And of course, as predictable, there will be again, an unnamed buyer, who will offer us a grand deal. So, the share price will spike again. Perhaps this time, many shareholders will finally throw in the towel and leave this investment once and for all. I don't know. We shall see.
I ask again, who are those buyers? Why not tell the shareholders who these buyers are? Who is preparing a bid? What can we legitimately look forward to? What damage could a shareholder do if their identity is revealed?
OK. So withhold these four entities names. How long? When are we shareholders entitled to the identity of these prospective buyers? Again, after the deal is negotiated? Why not divulge the terms to the shareholders, and let the shareholders vote whether to accept or reject the offers that come in?
There are more questions than answers when it comes to the terms of the Ulander transaction and history of the transaction. At least what little that has been divulged to the shareholders, holds no water at all. And unless the BOD is transparent with us, the same can be expected. I will wait to see what the BOD announces as to the pending offers. I wonder how long it will be before the current silence is broken and an announcement is made of an offer or a negotiated psa.
On the face of it all, it appears that the BOD and JJ at best misled the shareholders, and continued to mislead the shareholders during the period from the AGM in 2012 until the drop dead date a few weeks ago. At worst, this was a well planned and orchestrated shell game that benefited those in the know.
So when you so boldly tell us shareholders who believed the leaders of Medinah, and jumped in, we did so because we felt we could trust JJ et. al. We did so because they made clear and unmistakable statements about this company now being a capital company with growth on the not too distant horizon. BTW, what is a capital company, vs. a non capital company. Really?
Now for you to claim that we should not trust a pink sheet stock company begs the question of whether you are telling us not to trust anything JJ and friends and BOD tell us with regard to this next agreement that may be announced?
I think its not fair for you to shift the entire burden on to unsuspecting shareholders who believed such esteemed men as JJ in getting into this stock. I did not buy a pink sheet stock. I bought JJ and his and my friends word.
I don't know about other investors, but my chief decision was based on those who know JJ, and the impression they have of him as being in the know, an honorable man and a man of contacts and connections in Chile who could monetize this mountain. Is believing the CEO of your company an unforgivable quality? If so, tell me Rick, and I will never invest in a guy like Warren Buffett, Steve Jobs, Bill Gates, Michael Dell, Steve Case. Am I making my position clear. When I bought Apple stock at $40 per share, I did not buy a Fuji apple. I bought Steve Jobs word that he will turn this company around. When I bought Ford at $5, I did not buy a Mustang or a Lincoln Continental. I bought Allan Mullaly and his word that he and his team will turn this ship around. When I bought high risk biotechs, I bought their pipeline of research and development, and the team at the helm. Just as I bought MDMN.
It is not so much as buying the stock of a non reporting company that is the question, it's more like the person at the helm, who professed to be honest, clear with his signals, and powerful enough to demand and get his terms and monetize this mountain. And I did it through the honesty and clear representation of my friends who know him.
So far, you are right. My impression has turned out to be false. I should not trust even friends who know JJ. They trusted him. And look where it got us all.
