Medinah Minerals (MDMN) - 2017 Q1General Discussion

yes…

Medinah Minerals Inc. Sells Nuoco Interest to AURYN Mining Chile SpA

Feb 16, 2017
OTC Disclosure & News Service

Santiago, Chile -

Medinah Minerals Inc. Sells Nuoco Interest to AURYN Mining Chile SpA

February 16, 2016

Medinah Minerals, Inc. (Medinah) (OTCMarkets: MDMN) is pleased to report the sale of its 15% interest in Compañía Nuoco Mining Chile S.C.M., to AURYN Mining Chile SpA (AURYN) for 645,000 shares of AURYN. This brings Medinah’s total interest in AURYN to 27,469,000 shares or 27.5% interest.

Kevin Tupper, Medinah’s President & CEO, reports, “This is an important step in cleaning up Medinah’s balance sheet. Medinah was not in a financial position to contribute its 15% share of the NUOCO expenses and had no way to maintain its interest. Selling our interest to AURYN provides us with an increased percentage in the overall project and also enables AURYN to directly own 100% of the Altos de Lipangue Mining District claims. Furthermore, in light of AURYN’s recent announcement regarding the public listing of their securities, this puts Medinah in a stronger financial position.”

Submitted on behalf of the Board of Directors

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So that means the other 85% of Nuoco got allocated 3,655,000 shares of Auryn (do the math) - if they sold too (under the same arrangement).

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Everyone is talking about an IPO… Wouldn’t it be easier and cheaper for Auryn to do an RTO on a shell company and get listed that way?

Don’t think so, they just bought Medinah’s 15%.

“Medinah was not in a financial position to contribute its 15% share of the NUOCO expenses and had no way to maintain its interest”

I might be mistaken, but I thought our Nuoco interest was a FCI. In that case we would not have to contribute to Nuoco expenses!

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Auryn buying just our 15% of Nuoco (and not the other 85%) could provide some food for thought. Why would Auryn buy OUR share of Nuoco but not the others? I can think of a couple scenarios. Is Les an owner of Nuoco? That could be a good explanation. Is Auryn simply posturing MDMN for other events we don’t know about?

Not saying this does not make sense, it probably does because it makes Auryn’s ownership very clean now, My point is how can we keep up our operating expenses of the 27.5 % of Auryn. I believe the real benefit is mostly to Auryn, since they now own 100% of everything there does not have to be separate accounting for Nuoco. ! The question is did we get enough shares for are 15% FCI in Nuoco, that is if it was a FCI?

Auryn already bought the 85% for the private parties with Auryn shares. BTW we already received back the shares Chapin got from Auryn in the Nuoco purchase deal.

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[quote=“Karl, post:542, topic:1735, full:true”]
My point is how can we keep up our operating expenses of the 27.5 % of Auryn.[/quote]
What operating expenses does MDMN incur by being merely a shareholder of Auryn?

[quote]The question is did we get enough shares for are 15% FCI in Nuoco, that is if it was a FCI?[/quote]It was not, nor ever was a FCI. That was a lie perpetrated by Les (and JJ). They were and are criminals. Today’s PR confirms that Medinah was responsible for contributing to it’s share of NUOCO expenses:

“Medinah was not in a financial position to contribute its 15% share of the NUOCO expenses and had no way to maintain its interest.”

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I agree with Don D that AURYN offered that timeline as a possibility and intends to make it happen before year’s end. The IPO news was just released yesterday. Why would they announce this if not in anticipation of some real and substantial results getting verified during the next few quarters? It shows that AURYN anticipates there will be a great amount of positive news before filing an F-1 registration submission that will make it worthwhile. There would be little value in doing so if considerable valuation cannot be appropriately assigned to the ADL by the investment bank or banks underwriting the IPO. The primary reason for going through all the effort and expense of an IPO is to have adequate funding to proceed rapidly with infrastructure expansion.

Certainly good news on revenues from production shipments, continued positive high grade vein discoveries, and hitting and expanding projected revenue estimates would give a green light to raising capital via an IPO, if the F-1 application is accepted by the Commission. The SEC requires an uderwriter to put together a prospectus and a great deal of other information on an application. Continued drilling is a necessity. An inked JV for methodically mapping out the targets on any one of the ADL Project Targets including, the Pegaso Nero, the Las Dos Marias, and the Fortuna would certainly gain interest on a prospectus and ensuing road show. Will we have one before then? There was a reason AURYN engaged Dr. Raymond Jannas as a geological consultant for the next six months.

None of the foregoing is guaranteed to happen or proceed to an IPO, but AURYN has shown good reason to anticipate and plan methodically. Not overly optimistic, but I think we are in for an interesting year ahead. Medinah and Cerro are already essentially holding companies with all equity value tied to the shares held in AURYN, a private company. Let’s hope that AURYN is successful in going public. Shareholders are fortunate to have the hard work of Kevin Tupper guiding a path to bring value back to our shares in Medinah. Thank you Kevin. Keep the news flowing, especially the good news!

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The transfer of Nuoco to align ownership interest, and Auryn going public. It looks to me like they are getting ready for a JV partner?

“Medinah was not in a financial position to contribute its 15% share of the NUOCO expenses and had no way to maintain its interest.”

Makes me wonder if any work is happening at Nuoco???

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Does this put to rest a TO? I say so. Also future dividends to shareholders. I say hold on a little longer. We should have more of a clear picture by mid year. Jmo

I can’t wait to see Medinah & Auryn monthly news letter😄

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Rick, you are probably right, that it was not a FCI, since I can no longer find the announcement on the Nuoco deal on the MDMN website, But I too can say what expenses do we have if we own 15% of Nuoco stock.

The discussion is irrelevant since it is what it is and hopefully it is to our benefit. Just saying!

“Of note, MMC remains as a 15% shareholder of S.C.M. NUOCO, a Chilean Company in which AURYN Mining Chile, SpA holds the remaining 85% interest of the stock issued. MDMN, under the MOU Terms and Conditions, would have 36.25% of all production from the NUOCO claims (25% of AURYN’s 85% = 21.25% + its original 15% holding = 36.25%)”

Which lester JJ and kleen are in. Or am I wrong?

Chapin and Karra returned theres

The internet has a memory though…

https://web.archive.org/web/*/www.medinah-minerals.com

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[quote=“jrn6391, post:546, topic:1735, full:true”]
The transfer of Nuoco to align ownership interest, and Auryn going public. It looks to me like they are getting ready for a JV partner?[/quote]The only JV partner would be for the Pegaso Nero porphyry which appears to be too large for Auryn to handle alone. Which is why Freeport-McMoran is kicking the tires.

Auryn has their hands full with the gold targets and underground mining. They’re not going to JV that because they can build that out methodically while pulling in revenues.

[quote]Makes me wonder if any work is happening at Nuoco???[/quote]They recently announced that exploration would resume at LDM.

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Another thing I think shareholders really need to keep in mind and take to heart which myself and others have stated before…This is not the old Medinah.

Please try to break yourselves of all the old bad habits that evolved over years of poor communication, frustration and rumor-mongering.

Did anyone know Kevin was in Santiago until they read it on Facebook or here? You’re lying if you did. There are many shareholders that are close to Kevin, but they were rightfully kept in the dark about the trip. Isn’t it refreshing to be pleasantly surprised and not exploited by artificially heightened expectations and rumors? In the old days, we’d all be salivating in anticipation of every trip and what news would come of it. Les used our gullibility and need for news to his advantage and we were all patsies for the most part because of our need for being ahead of the curve on developments in MDMN…whether they were true or not.

I can assure you it is no longer necessary to read too deeply into the words in these PRs or what is posted on the website. Gone are the PRs that were written ambiguously or contradictory. If there is a mistake or something unclear in the PR, I know it will be corrected or further explained by Kevin…publicly, with clarity being the only intent. We no longer have intentional ambiguity in the PRs, nor do we have Les Price to add his own color commentary to get shareholders’ juices artificially frothed up. As most know, Kevin is plain spoken, matter-of-fact and honest. So take the words in the PRs exactly as they are written. There is nothing hidden. Don’t try to dream up scenarios that aren’t there. That was the folly of the old MDMN shareholder base, myself included. Nobody is going to be ahead of the curve on information that is disseminated. That’s the way legitimate companies operate.

Additionally, there is no bogeyman awaiting around the corner. That’s more directed at the I-Hubbers whose commentary continues as if there is another shoe to drop. Well, here’s an update for you…that shoe has already dropped! And now we just have to wait while Medinah digs out of this hole.

Many might still be unwilling to admit it, but this was a pump-and-dump scam orchestrated by Price and JJ, though over the backdrop of a very promising property. Why they couldn’t make a go of it honestly is still beyond me, but mining is difficult and they were in way over their heads. I guess orchestrating a scam was easier and they thought they’d never get caught. JJ was just shuffling properties around all over the place at whatever whim was necessary at the time. CDCH got burned big time by JJ’s disregard for contractual arrangements.

Shareholders have to forget the past (meaning the old MDMN) and hit the reset button as if this is a completely new investment. That doesn’t mean to let your guard down. It just means you shouldn’t allow yourself to be lured in by the old toxic ways of the past.

We should all know by now that Kevin is doing his best to clean up this mess, but there are some significant hurdles in our way. The litigation looks promising in Medinah’s favor, but nobody knows the outcome for sure. Medinah has to continue trying to claw back shares that were illegally sold to improve our share structure. And we have to hope that Auryn continues discovering new opportunities and begins producing at a reliable level to further instill confidence in the mountain and their ability to monetize it.

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Nice post Rick. I can’t now remember how many times or to how many people (you being one, haha!) over the course of ten years I ranted about how angering it was to me for LP to be disseminating “info” to individual shareholders to be passed around through the grapevine when the website clearly stated that no information should be trusted that was not posted on the official website. We should have all known the BS was going on because of the many times different people would come together after talking w/ Les and have different, contradicting info or things that didn’t line up, or that were stated so vaguely they were left wide open for rampant misinterpretation. The simplest and easiest way to give ALL shareholders information is to put out a PR and/or post it on the website. I heard that Les complained that he was too busy to post things on the site, but that’s because he was too busy talking to individual shareholders pumping his scams!

VERY REFRESHING to finally have some honest people running the show and actually looking out for the best interest of our company and therefore us shareholders.

THANK YOU KEVIN!!!

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Hoping the test runs are over and production as started.