Replies to post #68026 on Medinah Minerals (MDMN)

[Toxic Avenger]

Why is Auryn, a private company newly organized with just enough pedigree to provide a certain degree of credibility, and yet not the scrutiny that a more established mining company would be put through, the one to pursue this world class property and not Volcan and for that matter not one of the number of other second tier mining companies who could use another multi decade producing property such as ADL and LDM and the other holdings of JJ et al?

Excellent questions.

[Hurricane_Rick]

Why is Auryn, a private company newly organized with just enough pedigree to provide a certain degree of credibility, and yet not the scrutiny that a more established mining company would be put through, the one to pursue this world class property and not Volcan and for that matter not one of the number of other second tier mining companies who could use another multi decade producing property such as ADL and LDM and the other holdings of JJ et al?

For all intents and purposes, Auryn is Volcan at least by a dotted line relationship. Auryn is the conduit to which Volcan will eventually attain ownership in ADL. Roberto Letts himself anonymously described ADL as the last World Class deposit in S. America - at a time when Volcan was NOT involved with ADL when Medinah was dealing with Amarant. Volcan was extremely interested in ADL prior to Amarant's involvement and was rumored to be upset that JJ opted to go with Ulander/Amarant. I'm fairly certain that is more than just a rumor.

During the latest JV negotiations which eventually wound up with Auryn being the partner, MDMN/JJ were initially negotiating and finalizing the JV with Volcan. While Volcan as the prospective JV partner is not verifiable in the public domain, I think it is safe to say that most, if not all, shareholders viewed Volcan as a given. I'm fairly certain Auryn didn't exist at that time in the Fall of 2013. From what I have come to understand, half of Volcan's board wanted ADL and the other half didn't want to deal with JJ. Despite that, the deal had apparently been approved, but then JJ balked on it in late December 2013. Why?...I have no idea, but I had heard some odd rumors regarding that as well. I don't know what happened between December 2013 and the Spring of 2014, but that is where Auryn was born - where MDMN was no longer dealing with a single JV partner (i.e. Volcan), but rather a "group of Peruvian mining experts" (i.e. Auryn). I detailed this change in direction/tone by the company in this post I made in TMP and later posted here on I-Hub back in April 2014, though that was before we knew of Auryn.

So it is my opinion that Auryn was created by the Volcan decision-makers who wanted/needed ADL and didn't want to lose the long-awaited opportunity over a personality clash. They were willing to work with JJ until he was completely extricated from the process which is what we are currently witnessing. In the meantime, Auryn will prove up the ADL deposit, completely own and control it, and eventually present it (minus JJ) to Volcan for a joint venture consideration as originally intended. The investors and principals of Auryn will make a great deal of money for essentially brokering the transaction between Medinah and Volcan, fronting the money for drilling and exploration, and proving up the property to be economically viable.

As a side note, it is also my opinion that Volcan (and perhaps another S. American major) is one of the financial backers of Auryn Holdings Corporation - the Peruvian company that is financing Auryn Mining Chile. I believe this will come out eventually, but not until/unless ADL gets proven up.