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Medinah Minerals, Inc. (MDMN) headquartered corporately in Las Vegas, Nevada, is a Junior Mining Exploration Company with several acquired property interests, all located in the Country of Chile. The company's assets consist primarily in high-grade deposits of gold, silver, copper and molybdenum (moly).
Medinah Minerals, Inc. owns varying percentages of mining claims along with Compania Medinah Mining Chile at each of the Altos de Lipangue, Compania Minera LDM Chile, Sociedad Contractual Minera American Medinah Gold, Minera Jota, Minera POLO 1-780 and the Madre de Dios placer claims.
Compania Minera LDM Chile has commenced exploration/exploitation developmnet of the Las Dos Marias high-grade gold/copper property with Medinah Mining Chile retaining a 20% ownership interest of the Minera LDM Chile company. Medinah Minerals, Inc. has a 30% net interest holding in the property's production. Medinah Minerals, Inc. owns 20% interest in the Minera Jota properties and a 15% interest in the Minera POLO properties.
Medinah Minerals, Inc. only participates in mining claims that are fully registered with the Chilean Ministry of Mines through filings by Medinah Mining Chile. Each of the mining claims are in good standing and recognized under Chilean Mensura Mining Laws. The Total area of mining properties covers +15,000 gross hectares..
• Stock Symbol: MDMN
• Website: http://www.medinah-minerals.com
• Company Q&A: http://www.medinah-minerals.com/Q_A_Website.html
• Company Unaudited Financials: http://www.medinah-minerals.com/financials.html
About the President/CEO of Medinah Minerals: Sr. Juan Jose (JJ) Quijano, an attorney, as well as his father were instrumental in writing/developing mining legislation for the country of Chile and he also happens to control the most mining claims of any individual in Chile. He practices before the Chilean Supreme Court and other South American countries on mining matters and has been partnered with both Cerro and Medinah for many years. His knowledge and influence within the Chilean mining community and government are key assets and an integral part Medinah's corporate plans. His complete biography can be found here: http://www.medinah-minerals.com/juan-jose-quijano.html.
Share Structure Information
• Shares Outstanding:
968,353,270 as of 9/30/2013 • Float:
732,890,000 as of 12/31/2012 • Authorized Shares:
3,000,000,000 common as of 12/31/2012 • Class C Preferred Convertible Shares:
100,000,000 as of 12/31/2012
Share structure updated from www.otcmarket.com http://www.otcmarkets.com/stock/MDMN/company-info • Transfer Agent:
American Registrar & Transfer Co.
342 East 900 South
Salt Lake City, UT, 84111
Alto De Lipangue (ADL) Joint Venture Status and Updates
History of Alto De Lipangue: http://www.medinah-minerals.com/pdf/LipangueUpdate5_12_2012.pdf The shareholders of Medinah Minerals, Inc. (USA) extended, through a quorum of voting shares at Annual General Meetings in 2006 and 2008, detailed instructions to Juan José Quijano-Fernandez (JJ). The specifics of the shareholders directives were that Señor Quijano undertake all steps necessary to transact a sale, Joint Venture Agreement, or financing to proceed with the further development and ultimate production of the Alto de Lipangue properties. Since that time, JJ has negotiated and entertained a variety of proposed joint ventures or property sales with various mining entities...none of which have been completed to date.
ADL Joint Venture History
JJ Quijano, through his Chilean company Medinah Minerals Chile (MMC), has been negotiating the sale and/or joint venture of the Alto de Lipangue properties since the promising drill results of the Gordon Breccia were revealed during the 1999-2000 drill programs. While interest in the ADL properties have reportedly been high and close to being joint ventured at different stages over the last decade, it wasn't until the late 2000s when after the surrounding claims of ADL had been acquired by Medinah, that JJ Quijano was able to present a large enough and complete package that would catch the serious interest of several mining outfits of varying degrees of size and history.
Negotiations eventually led to the finalization of the first officially announced joint venture agreement (JVA) with an undisclosed mining consortium in January 2011. The basic terms of the deal called for a generous 15% free carried interest Due to non-disclosure agreements, the identity of this partner was never revealed, though it is often informally referred to as "Partner A" by Medinah shareholders. The joint venture finalization never materialized due internal issues on the partner's part which resulted in an inability to meet its funding obligations. As such, MMC (JJ Quijano) reopened negotiations with other interested parties in September 2011.
In February of 2012, the company announced that they executed a purchase agreement with a new partner. Terms of the new purchase agreement were essentially $180 million for an 85% ownership interest in the ADL properties. MMC would maintain a 15% free carried interest in the property. The JV partner was often informally referred to as "Partner B" by Medinah shareholders, though it was later revealed in July, 2012 that the partner was Dubai-based Amarant Mining Ltd. Similar to the Partner A ordeal, Amarant Mining had difficulty meeting its funding obligations for the ADL purchase agreement which was subsequently terminated by Medinah on May 11, 2013 due to non-performance.
Immediately upon terminating the ADL Purchase Agreement with Amarant Mining in May 2013, MMC and JJ Quijano immediately reopened negotiations on the 1508 ADL property for a 3rd time, reporting on July 22, 2013 that there were six prospective and reputable mining concerns involved in serious discussions for either the joint venture or outright purchase of the ADL claims. Subsequently, on August 27, 2013, MDMN reported the acquisition of 100% of Medinah Minerals Chile along with 21 additional ADL claims to further consolidate the ADL claims group into a complete claims package under a single ownership entity. This consolidation was a milestone necessary to finalize a joint venture agreement - the assumption being that the ADL ownership restructuring was a requirement made by the prospetive joint venture partner.
Recent Developments Regarding Alto de Lipangue Joint Venture/Sale Negotiations
| September 14, 2013 || Medinah reports receiving 100% ownership and legal title to all ADL claims pertinent to the joint venture agreement. |
| September 4, 2013 || Medinah reports on their BOD business trip to Chile from August 18-26 and explains that the recent consolidation of claims ownership of ADL was necessary as a condition of final negotiations with a major joint venture partner. |
| August 27, 2013 || Medinah acquires 100% of Medinah Minerals Chile along with 21 additional ADL claims to further consolidate the ADL claims group into a complete claims package under a single ownership entity |
| July 22, 2013 || Medinah reports that there are 6 prospective andreputable mining concerns involved in serious discussions for either the joint venture or outright purchase of ADL. |
| May 28, 2013 || Medinah reports the activities of their business trip to Chile from May 13-23, including representatives from prospective joint venture mining concerns touring ADL and Las Dos Marias. |
| May 11, 2013 || Medinah terminates the ADL Purchase Agreement with Amarant Mining due to default on Amarant's part. Medinah will now seek other sales and/or partnership opportunities relating to the 1508 Altos de Lipangue mining claims. |
Medinah's Properties / Investments
ALTO DE LIPANGUE
Medinah's Alto de Lipangue claims consist of a gold, copper, silver and molybdenum complex of approximately 10,000 hectares located along the Andes coastal mountain range approximately 35 kilometers NW of Santiago, Chile in the Metropolitan Region of Chile. Medinah's Lipangue claims are believed to encompass a large copper/gold porphyry as first confirmed by Gordon House, former (dec.) P. Geo of Medinah, as suggested by independent geological analysis provided by A.C.A. Howe on the property and the Satellite Imagery Report by Clemente Sepulveda Perez (contracted by Vale and BHP Billiton). It is of significant note that Perez concluded in his report that "2 PORPHYRIES ARE PRESENT AND A VARIETY OF MINERALIZATION TYPES WERE IDENTIFIED. AT LEAST "HUNDREDS OF MILLIONS OF TONS OF RESOURCES" ARE PRESENT IN THE UPPER PARTS OF THE PORPHYRIES AND SKARNS. HE CITES THAT THIS IS WITHOUT A DOUBT A "WORLD CLASS" DEPOSIT."
For the most comprehensive compilation of due diligence regarding Alto de Lipangue, refer to Dr. Jim DeCosta's Valuation Considerations for the Lipangue Deposit.
WHY LIPANGUE IS A DESIRABLE DEPOSIT TO JOINT VENTURE:
1) Approximately a 140 square Km (according to C. Sepulveda Perez) area of landholdings.
2) 18 holes drilled to date identifying an approximately $ billion "measured resource" at today's prices (July 2011). This "Gordon" breccia pipe is open in all directions, measures 80-meters in "True width" and dips to the south and east.
3) A second breccia/skarn discovered at the northern aspect of the Lobo property of Cerro Dorado, Inc. "Containing upwards of 3% copper, plus gold, plus moly". The Northern Lobo breccia/skarn outcrops over 1,000-meters in length and 80-meters in width over a 400-meter elevation range from 1,300 to 1,700 meters. This was described by its discovering geologist at the recent annual meeting as "A major mineralized breccia pipe".
4) A "Stockworks" discovery has been identified by one of the visiting major mining firms southwest of the "Gordon" breccia pipe. No surface or depth dimensions are available yet to my knowledge.
5) A 250-meter by 250-meter "Bowl-like depression" (Suspected breccia) near the airstrip bordering the southern Alto and Lobo (Cerro Dorado) properties. This depression coincides with very favorable geochemical sampling as well as Induced Polarization findings of "High resistivity" (heavy silicification from the presence of quartz which often is associated with gold) and "highly polarized" indicating the presence of sulphides often found bonded to various metals. Surface sampling revealed 6-10 gm/tonne gold plus moly.
6) Three past-producing molybdenum mines on site near the 1,000 meter elevation level (the plateau is at 2,000 meters). This finding is very consistent with the thesis of a copper-moly porphyry as molybdenum typically concentrates at lower elevations near the outer aspects of the "Porphyry stock" (Lowell-Guilbert model). At the most recent Annual General Meeting of Medinah Minerals, Inc. Sr. Quijano noted that the molybdenum assay results in this area were approximately 10 times that of the average molybdenum mine. Medinah's head geologist brought samples of very high concentration moly containing rocks found near the Carrizo Mine adit. Native molybdenite looks an awful lot like graphite and has a similar "slippery" texture.
7) Many vein systems one of which, the Fortuna Vein (Cerro Dorado), averaged gold production values of 63.4 gm/tonne from 1940-1970. ACA Howe report suggests that these veins have barely been touched and remain mostly unexplored. Other veins include the Veta Rica, the Guarani, the Caren and the Veta Espanola.
8) Mineralized 80-meter wide shear zone found at Las Dos Marias. This has been traced at surface for over 700 meters before it dipped below the volcanic andesite layer. The 71-meter level revealed a 1-meter intersection measured by ACA Howe as containing 454 gm/tonne gold.
9) Copper skarn/manto discovery at Las Dos Marias on the eastern flank of the "Quebrada Durazno" ("Peach gulch"). The junction between the low sulphidation gold-copper porphyry and this skarn has been identified.
10) 40 Km of roads recently built and/or refurbished. "Road cuts" into the side of the mountain throughout the property reveal mineralization nearly ubiquitous in nature. This is especially true at the "North" road (Cerro Dorado) with its 24 "switchbacks" cut into the mountain side revealing copious amounts of mineralization.
11) Many, many kilometers of adits (horizontal tunnels), chimneys, trenches, shafts, etc. completed over the last 30 years.
12) Tailings piles from artisanal workings average 5.3gm/tonne gold.
13) Close proximity to the Ventanas (Codelco) and Chagres (Anglo American) smelters.
14) Close proximity to the seaport of Valparaiso.
15) Close proximity to a major electrical grid west of Lampa.
16) Close proximity to Santiago (approximately 37 Km)
17) Relatively low elevation of 500 to 2,000 meters with water issues much less severe than the Andean or Atacama Desert porphyry mines at higher elevations where ACA Howe reports the infrastructure to be "basically nonexistent". Water issues, electricity issues and natural gas issues at the higher elevations are a huge problem that might curtail copper production and buoy prices and the attractability of discoveries at lower elevations.
18) Roughly estimated average of $100/ tonne "Rock" containing copper, moly, gold and silver.
19) Extremely roughly estimated ore body size of 800 million tonnes (Via crude extrapolation of an average-sized copper-moly porphyry and an average-sized copper-gold porphyry).
20) Host country of Chile considered by many as the safest and most mining-friendly country in South America if not the world.
21) Over a dozen major mining firms have shown interest by making repeated site visits and signing non-disclosure agreements (NDAs).
22) Porphyry discoveries are considered very homogenous and not likely to present any shocking disappointments as to size and/or grade. Their grades are not supposed to be spectacular. They're known for being huge and of moderate to low grade. They are the target of choice for most mining companies due to their long mine lives.
23) Codelco (the Chilean government's mining arm and largest producer of copper in the world) recently staked the properties contiguous to the south where they recently embarked on an airborne geophysical study.
PICTURES OF PROPERTY
Video Tour of the Property is available here: http://www.youtube.com/user/Medinahshareholders
Map of the property can be found here:
LAS DOS MARIAS
Medinah Minerals Chile (S.A.) has historically been the 100% owner of the Las Dos Marias claims, 1-30 totaling 130 hectares on the northwest slope of the Alto de Lipangue plateau. Las Dos Marias is a high grade gold vein complex and it had been proposed to sink a shaft to intercept the high grade gold mineralization as a quick and economical way to monetize the deposit. The following is Paul Jones' original proposal for sinking the shaft into LDM.
For historical purposes, according to the May 4, 2010 Q&A, late in 2009, and early 2010, the intention of company management was to feature the Las dos Marias property as an independent production entity. Various JVA potential partners had requested that the Las dos Marias project not be a "stand alone" issue, but be included as an added deal point matter in the Alto de Lipangue negotiations. Ultimately in late 2011, Medinah Minerals entered a JV with a Funding Agreement entity (Compania Mineras LDM Chile) to sink a shaft and mine LDM on their own. Work on LDM began in early 2012. Upon unexpectedly striking a high grade gold vein in April 2012 when tunnel excavation just began, Medinah and CMLDM restructured the ownership of LDM on May 3, 2012 so that essentially CMLDM took control of all of the Los Amigos 1 claim which encompasses the vein structure while Medinah retained a 30% NSR from Los Amigos and regained 100% ownership in the 9 other LDM claims surrounding the vein.
Recent LDM Developments
On August 17, 2012, the company announced
that the discoveries made during the tunneling operations at LDM have necessitated the development of a "much larger scale" mining operation. Company Management, Mining Engineers, and Geologists are developing new mining plans that include the extraction of significant ore tonnages apart, and in addition to encountered veins at DDH-1, and anticipated at the soon to be reached DDH-2 site. Crosscuts in the tunnel have yielded gold averages of 8+ g/t on the east crosscut and 5+ g/t on the west crosscut. Samples from a newly discovered secondary tunnel showed an astounding 6.5% copper per tonne across the face with other values at 1.51%. And a newly discovered 2-meter wide gold vein was discovered at 51 meters
Random sampling of the skarn has been ongoing during the tunneling process. Samples of skarn material returned grades ranging from 9.4 grams per tonne gold to 2.3 grams per tonne gold. Sampling of the skarn material in the open pit returned assays similar to those from inside the tunnel. Las Dos Marias Tunnel Project 1-hour Video (December 2012)
On June 19, 2013
, CMLDM announced that shipments of copper ore have begun to the San Pedro mill in Til Til, Chile.
LDM Exploration History
The following is a bit of history on Las Dos Marias provided by Dr. Jim Decosta from TheMiningPlay forum:
"A LITTLE HISTORY OF THE LDM IN ORDER TO KEEP THE RECENT LDM VEIN DISCOVERY IN CONTEXT
The IP/IR study done at LDM involved a 1,000 meter by 1,000 meter grid that showed "hot spots" on all 6 of the 6 horizontal lines. A "hot spot" would equate to areas with high polarizability overlapping with resistivity measurements indicating the presence of silicification and/or sulphides. Gold has a tendency to hang out in areas of high silicification (quartz bearing) and high sulphide levels (typically pyrite and arsenopyrite).
Medinah drilled 2 holes to test 2 hot spots. Hole DM 99-01 had very good results and DM 99-02 had spectacular results at the 68 meter depth level. The plan became to sink a vertical shaft at 99-02 to the 70 or so meter level and trace out the mineralization found in the drill core at that location. Due to the new safety rules in Chile subsequent to the 33 miners being trapped a horizontal safety tunnel is now mandated for vertical shafts.
The horizontal tunnel was designed to intersect the vertical shaft at the 70 or so meter level. The horizontal tunnel was to have a slight decline to it in order to drain out any water encountered. Since the property slopes downwards from south to north the horizontal tunnel was planned to commence north of the "glory hole" (99-02) at the proper elevation level to accommodate for the decline. With a little luck, this tunnel would intercept the intended vein on the way in to the center of the mountain and provide some production opportunities.
While preparing the entry way for the tunnel the track hoe intercepted a gold/copper vein right near the surface. After testing the vein contents and no doubt comparing the ore to that in the drill cores attained at the 68 meter level of 99-02 the geologists and engineers decided to trace the vein to depth and into the mountain. As was announced recently the engineers and geologist have now come to the conclusion that the vein encountered at surface while preparing for the tunnel commencement was indeed the targeted vein intersected at 99-02 i.e. the "glory hole".
Instead of commencing mining several months in the future if the high grade area was successfully found in the vertical shaft mining has commenced already. It is not 100% clear if the need for a rather expensive vertical shaft has been circumvented or not as its main purpose was to act as the locator for the high grade zone.
The high grade vein is basically a single "shear" within a "shear zone" usually containing many parallel "shears". Once filled with metal-laden hydrothermal fluids that have cooled and deposited their contents the mineralized shear is referred to as a "vein". This 1 particular "shear/vein" is the subject of a contract between private investors and MMC Chile which is 50% owned by Medinah USA. All other "shears/veins" identified throughout the mining process revert back to the 50-50 ownership of Medinah USA and the Quijano family. The vast majority of the mineralization identified by the IP/IR studies at LDM sits in the "manto/skarn" structures immediately east of the shear zone. ACA Howe notes that the "hanging wall" (westernmost wall) of the shear zone well to the west of the new vein discovery which hosted the LDM Mine's historical production is still one of the primary targets of the shear zone. The discards from the historical mining process (the "tailings") at the LDM Mine weigh in at a healthy 5.39 grams per tonne of gold which indicates the archaic nature of the mining methods available at the time. Due to the lack of technology "visual gold" was the target of nearly all predecessor mining efforts."
Geological Map of LDM Claims Area
The yellow line represents the mine shafts. The vertical mine shaft of course is straight into the page located at previous drill hole pad 99-02. The horizontal decline mine shaft is depicted by the yellow line. It will be dug so as to pass through the gold zone identified in drill hole 99-01 and then connect up with the vertical mine shaft. You should be able to get an idea of just how small area that this covers of the LDM. This claim map is old..and since that time-Juan has swallowed up all the area around the old LDM claim block and added it to Medinah's holdings.
A Geological Map of LDM Area
The little red box represents the LDM claim block. The little white area with spots in it I believe represents areas of hydrothermal alteration of the rock. The main Alto De Lipangue claims blocks are off the screen to the East etc.
Aerial image of the LDM
The "mine shaft location" is actually the location of the vertical mine shaft which is colocated at drill hole 99-02.
New LDM Access Road.
This exits into our neighbor's claims area and then down into the valley. This is probably how the ore trucks will transport the gold ore from the mine. There might be some sort of gravity separation process equipment set-upon our neighbor's property that could be used to concentrate the ore prior to smelting.
MADRE DE DIOS
On February 1, 2014, Medinah announced th
e company received, without remuneration, a 30% owernship interest in the Madre de Dios gropu of gold-bearing placer claims in the southern coastal area of Chile. These claims, consisting of greater than 8,000 hectares, are located in the Province of Valdivia, which is approximately 700 kilometers southwest of the capital city of Santiago. JJ Quijano also reported that he has received 3 different partnership and ownership production offers on these prospective properties.
A geological report
on the Madre de Dios properties was written in 2007 for Global Gold Corp.
On July 9, 2009, Medinah reported the acquisition of a 15% interest in the POLO claims 1-780 covering a surface area of approximately 3,000 hectares in the lower Andes Mountain range located near Santa Cruel in the VIII region about 600 km (360 miles) to the south of Santiago, Chile. In the April 15, 2011 Shareholder Update, the company announced that a Letter of Intention was signed on 4/11/2011 with International Copper Company Chile LTD to undertake an exploration program with the potential of ICCC to earn up to 85% of the total POLO group of claims.
According to the May 12, 2011 company update, two crews representing the International Copper Company Chile (ILCC) are presently on-site at the POLO claims completing their geological assessment and preparing their work program.
As of the July 21, 2011 company update, "the ILCC lawyers are now documenting a contract pursuant to the terms as posted on the Medinah Minerals, Inc. website dated April 15, 2011."
On August 31, 2011, the company updated that ICC's geological team was unable to complete the assessment of the POLO claims due to snowfall and winter weather. As such, the property owners extended the option period for completion as soon as weather permits.
PONIENTE, ORIENTE AND SUR
In the June 2, 2011
shareholder update, it was revealed that negotiations were continuing with regard to LOIs for other surrounding Lipangue area properties called Poniente, Oriente and Sur. These negotiations are not part of the Joint Venture Agreement on the Minera Alto de Lipangue project. Medinah Minerals, Inc. (USA) has a percentage interest, to be determined, in each of these pending LOI's.
As of the July 21, 2011
shareholder update, "documentation and verification of claims, etc., have been presented to interested parties to try and bring forward "Letters of Intent" on the Poniente, Oriente, and Sur properties that are in proximity to the Alto de Lipangue location. These proposed LOI's, if completed, will consist of small cash down payments and semi-annual payments over a 3-year term, with the end price to be determined at the conclusion of an intensive exploration program. Medinah Minerals,(Chile) S.A. retains the predominant ownership interest in each of these property holdings. Medinah Minerals,Inc. (USA) will receive an, as yet, unspecified carried percentage interest in each of these holdings, when completed."
Within the company's October 11, 2011
update, they describe these properties as follows: "Included in [the as yet untested Oriente, Sur and Poniente claims on the northerly and eastwardly sections of the Altos de Lipangue plateau] are potential high-grade iron ore deposits with associated gold values. Realistic values of gold may be determined herein via massive arseno-pyrite formations that were originally opened up in old Spanish gold explorations. The old workers never attempted to recover gold from the arseno-pyrite and so this was discarded on large tailings piles."
CICLON 1 AND 2 (Cancelled 12/5/2013)
As reported in the Shareholder Update on 12/5/2013
, Medinah Minerals, Inc., with the concurrence of the majority land owners, has cancelled the purchase contract as to its 20% shareholding in the Ciclon I & II projects. This was due to the failure of the purchaser, Serena Minerals, to exercise their monetary purchase option of the Ciclon I & II properties. For purposes of history, the following explanation details the property and developments up to the cancellation.
Ciclon 1 and 2 (Sociedad Legal Minera Ciclon 1 Del Sector Sur Quebrada Slitrosa and Sociedad Legal Minera Ciclon 2 Del Sector Sur Quebrada Slitrosa) are two "potentially very valuable copper-bearing
properties" comprising 620 hectares north of Copiapo, Chile in the copper-rich Atacama Desert region. The company had originally reviewed these properties on their March 2010 trip to Chile and as disclosed in the November 17, 2011 shareholder update
that they officially acquired these properties in exchange for 20 million shares of stock. This transaction was completed (presumably on February 7, 2012) when the ADL Purchase Agreement was signed and was noted in the footnotes of Medinah's 2011 Finacial Report
"Since the balance sheet date, the Company has issued twenty million of its common shares in exchange for a twenty percent interest in the Ciclon 1 and 2 properties."
In the 11/29/2011 Q&A
, the company provided greater detail regarding the Ciclon 1 and 2 properties. The key revelations from the Q&A are as follows:
1. The MDMN shares used to pay for these properties will not be issued until after the Lipangue JVA closes.
2. Previous exploration resulted in the indication of three main mineralized bodies which are proposed to be drilled and tested by at least 5000 meters of RC drilling distributed in 14 holes.
3. Geologist and Mining Engineer data inferred grades of copper up to 2.5% (with "interesting gold credits") estimated tonnages of copper ore contained in each area are as follows:
Identified Ore Body
On February 5, 2012, the company reported that several major companies have expressed interest in both Ciclon properties and have their engineers and geologists on-site reviewing and preparing an offer.
On April 3, 2013, the company announced that the Ciclon I and II properties were sold to Serena Minerals (a Chilean subsidiary for an Australian company - speculated to be Herencia Resources) for $5.4 million paid over a 4 year period. Ciclon I and II owners retain a 4% NSR in the project. Medinah Minerals Inc. owns 10% of the Ciclon I and II owners so they would be entitled to 10% of the 4% NSR. In addition, the sale price could be increased by $5 million if reserve estimates exceed 1 million tonnes of copper with a grade of 0.6% or greater.
MEDINAH GOLD / AMERICAN SIERRA GOLD CORP. (AMNP)
Medinah Gold Inc., a Nevada corporation, was established in 1999 as a result of a dividend spinoff from Medinah Minerals, Inc. For over 14 years, Medinah Gold was primarily used as a holding company for mining claims and mining properties. In December, 2011, Medinah Minerals settled its advances to affiliated companies by taking 4,500,000 shares of Medinah Gold, Inc. at a deemed value of $.10 per share. At a directors' meeting of Medinah Gold, Inc. on 2/10/2012, the directors approved an additional 5,500,00 shares of their stock to come to the comany in exchange for accrued interest on indebtedness that was retired in December 2011. As such, Medinah Minerals, Inc. owns 10,000,000 shares of Medinah Gold.
At a Medinah Gold shareholders meeting in October 2012, it was announced that Medinah Gold would merge with American Sierra Gold Corp (AMNP). As such, the following Medinah Gold property ownership was brought into AMNP:
1) 75% interest in the Gilda mining cliams which are 900 hectares located 42 kilometers southeast of Copiapo in the Atacama desert Region III of Chile. The deposits found in these claims consist of copper breccias, copper veins and gold veins.
2) 10% interest in the Jota group of claims in northern Chile, near Iqueque.
3) Ownership interest in a 600 hectares mining property in Chile, called Caleu. This property is located in western, central Chile, approximately 40kms outside of Santiago, Chile.
It should be noted that according to American Sierra's SEC Form S4 Prospectus filed 12/14/2012, that Medinah Minerals owns 13.8% of AMNP. In addition, given the ownership interests of JJ Quijano, Larry Regis (also elected Chairman), Kleen Investments, MMC Mines, Inc and GXK Ventures (Les Price), that Medinah Minerals has a dominating interest in AMNP.
SOCIEDAD CONTRACTUAL MINERA AMERICAN MEDINAH GOLD (AMG) - JOTA Group of Claims
On February 22, 2012
, Medinah Minerals, Inc. announced the 20% purchase of Chilean company Sociedad Contractual Minera American Medinah Gold (AMG) for 20 million shares of MDMN. AMG primarily owns the JOTA group of claims near Iquequi, Chile. JOTA consists of 3,150 hectares of placer claims and 3,200 hectares of hard rock claims. The JOTA property was subject to extensive filming by The Discovery Channel during late January and February, 2012 for a program that will air in March 2012. Additionally, the company reports that several parties have expressed interest in joint venturing the JOTA property. The JOTA property was first contemplated at the February, 2012 AGM in Las Vegas and the company was still entertaining the purchase as updated in its 12/14/2012 Shareholder Update
. List of JOTA's claims
Certificado of ownership
According to comments by JJ and the BOD at the February 2012 AGM, the Jota property has over 100 drill holes over 20Km with 100 meter step outs. Based on $1,600 per ounce of gold and JJ's estimate of $6 billion worth of gold, this would represent a rough estimate of about 3.75 million ounces. The preliminary work was performed 15 years ago by "the State" (Codelco), the Germans and the Japanese and the average grades were 0.45 grams of gold per tonne. Considering that gold was only $280 per ounce at the time, the Jota deposit would have been marginally economic. Obviously with gold at $1600 per ounce, the economic value of Jota is more compelling which is why JJ subsequently bought the property.
As stated above, the JOTA property was part of a documentary filmed by The Discovery Channel in late January-early February, 2013. The filming took place at the JOTA property and JJ Quijano was included in the documentary. The Discovery Channel show will be an off season series off-shoot of their very popular "Gold Rush" show, featuring Todd Hoffman and his crew, as seen in this clip which aired at the Gold Rush season finale on 2/22/2013. JJ Quijano appears near the end of the clip with the Hoffmans in a helicopter as depicted in the below picture.
PUMILLAHUE (Vacated 11/17/2011)
On June 1, 2009, Medinah became the legal owner of 5% percent of the total issued shares of the private company, Minera Pumillahue formed to develop a placer gold operation in southern Chile. On November 5, 2010, Medinah reported that the Pumillahue holding is presently the subject of a complete review and reassessment by a Russian Mining consortium. Señor Quijano advises that this change of mining prioritization and certain management positions will create a much better potential value in the near future. As of March 8, 2011, Medinah Minerals Chile members are actively participating in the reorganization of the Pumillahue claims, and Turner plant operation alterations. In the company update from 11/17/2011, it was revealed that the Pumillahue claim was vacated by all partners including Mednah, due to the partners' eluctance to address a "cash call" demand for $150,000 to maintain ownership of the claim.
| Legal Matter || Details |
| Alto De Lipangue 2011 ex-JV Partner || In the 12/23/2011 shareholder update, management revealed that it has notified the parties of the prior failed JV agreement of its intention to sue for damages and breach of contract. Management has also issued a demand for the release of our Trust funds and the payment of penalties in excess of $1 million (one million dollars). Names of these parties will be released only in filed court documents as Medinah Minerals (Chile) S.A. remains under the certain terms of the Non-Disclosure Agreement. A chronology of the delays in funding the JV with this original partner are chronicled in the Alto De Lipangue section above. |
| Matters Related To Bogdan Borkowski || In the 11/17/2011 Q&A, it was revealed that JJ Quijano brought charges of grand theft and felony fraud against Bogdan Borkowski that involves mulitmillions of shares of MDMN. JJ placed his shares into an escrow account to stand as collateral for a loan from Mr. Borkowski. Upon paying the debt on time, JJ discovered that the escrowed shares were illegaly sold by Borkowski and his Chilean broker. Chilean authorities subsequently charged Borkowski for grand theft and felony fraud involving the illegal and non-authorized sale of JJ's MDMN shares. The Chilean Supreme Court is now completing its judgement and order of restitution to be made to the benefit of complainant, JJ Quijano Fernández. |
In the 12/23/2011 shareholder update, managment revealed that law enforcement personnel are currently pursuing an expanding investigation into the criminal activities of associates of Mr. Bogdan Borkowski. All known associates are being sought out and certain parties who have had a history of interfering with Medinah Management's personnel and the Company's right to pursue its business interests in a free and unfettered manner have, or soon will be reported to those same authorities.
To follow the Bogdan Borkowski appeals case, refer to the Chilean Court of Appeals.
| Russell Godwin Lawsuit & Countersut || To follow the Russell Godwin lawsuit vs. Medinah Minerals and the counterclaims being pursued by Les Price, JJ Quijano and Medinah Minerals. According to the company's November 17, 2011 Q&A, Medinah has instructed its Attorneys to proceed with Examination of Discovery of all parties involved to further Medinah's filed counterclaims against all parties. Medinah maintains that the original lawsuit filed by Godwin et al, was frivolous and without merit. Supreme Court case #S081066 includes Benjamin Ainsworth, Hela Hansen, Russell Godwin and the Estate of Gordon House (named third parties are Russell Godwin and RGM Communications Inc. as plaintiffs). Subsequent to the examinations of discovery, immediate application will be made to the British Columbia Supreme Court for trial dates. According to the British Columbia Supreme Court database as of November 24, 2011, Medinah Minerals, Les Price, and Juan Jose Quijano have all filed a Notice of Intent to Proceed in the lawsuit with Russell Godwin. And Russell has filed a Notice that he let his Solicitor go and is representing himself. |
In the footnotes of the company's 2011 Financial Report, the company updated the status of the lawsuit stating that Medinah, et. al. is now proceeding against the plaintiffs with Examinations of Discovery slated to begin March 27, 2012, with a view to an early trial date.
On July 26, Medinah's counterclaim for $2.8 million was filed with the British Columbia Supreme Court.
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