SHAREHOLDER UPDATE
November 17, 2011
Dear Shareholders:
At the request of Señor Juan José Quijano Fernández, members of the Board of Directors of Medinah Minerals (Chile) S.A. and Medinah Minerals, Inc. (USA) were summoned to Santiago, Chile. This travel, during the week of November 6 to13, was to meet and then assess numerous matters involving the Company's future aspirations and to further define and administrate goals. As a "penny stock company", Medinah Minerals, Inc. (USA) has encountered numerous obstacles and setbacks over the years, but continues to work toward the ultimate goal of finalizing a "fully funded" Joint Venture Agreement for the Altos de Lipangue group of claims
The first order of business was to work on finalizing the formation of the Compañia Minera LDM Chile. In Chile, when parties have agreed to a contract for signature, all parties must appear before the Notario y Conservador de Minas de Santiago who then prepares, from their agreement, among parties, an illustrated contract for final signature(s) and filing with the Country of Chile. Additionally, all parties must sign and have fingerprints affixed to the documents to constitute a “final” and “legally recognized” instrument. All Compañia Minera LDM Chile documents were formally notarized. Compañia Minera LDM Chile immediately filed a request for all necessary approvals by the Chilean Government and the Chilean Ministry of Mines to conduct mining business. This process usually takes approximately 10 (ten) days. Upon the Governments' final approval, the Compañia Minera LDM Chile is then a “publicly disclosed contract document”, and it is placed into the Chilean Central Computer Registry. With the proper Chilean “RUT Numbers and DL 600 possessed” (business numbers) Compañia Minera LDM Chile can then conduct recognized and legalized mining operations in the Country of Chile. The activities of the Compañia Minera LDM Chile must be reported, on a yearly basis, to the Chilean Ministry of Mines.
Compañia Minera LDM Chile banking matters were applied for pending the receipt of a final governmental corporate number (similar to a United States EIN tax code number) that should be opened at or near November 25, 2011.
In anticipation of Compañia Minera LDM Chile approvals, meetings were then conducted with two mining contractors to discuss the cost and preparation matters necessary to immediately start work to sink a shaft and drift an adit at the Las dos Marias property. Various rule changes in the Country of Chile were discussed. Due to the devastating February 2010 Earthquake and the newsworthy 33 rescued miners issues, President Sebastián Piñera initiated various Safety and Environmental mandates to protect Chilean miners. Each mining contractor was admonished that doing business at the Las dos Marias mining project would require them to fully adhere to these new rules and all other Chilean Ministry of Mines legal requirements. Each party laid out feasibility plans to begin work in the next 30-45 days. One party was deemed to have superiority in terms of equipment, knowledgeable work force, and expertise to accomplish the required work requested. Necessary contractual documents are being prepared for “outlined work requirements” among the parties. Upon final approval and Compañia Minera LDM Chile banking account opening, payment of fees will be applied and work will commence at the Las dos Marias site. Medinah Minerals, Inc. (USA) has contracted with an independent supervising geologist so as to receive monthly reports on Compañia Minera LDM Chile activities. Information as to start-up and on-site activities will be forthcoming as they occur.
Subsequent to these meetings, Medinah Minerals, Inc. USA was informed that the company, Compañia Minera Pumillahue, had initiated a demand “cash call” of each owner to subsidize its activities. Medinah Minerals, Inc. (USA) was requested to bring forth an amount described as $150,000.00 (One Hundred and Fifty Thousand dollars) for its continuing 5% (five percent) ownership interest in the project. MDMN was further advised that the fully constructed Turner plant operation had closed, and none of the other Compañia Minera Pumillahue owners were going to honor the cash call demand. Medinah Minerals, Inc. USA opted to vacate its position entirely.
During our previous business travels to Chile in March of 2010, Medinah Minerals, Inc. (USA) had reviewed two significant properties north of Copiapo, Chile in the Copper-rich Atacama Desert region. Management of Medinah Minerals, Inc. (USA) continued to work on the details of a possible acquisition for the last year and a half. Our offer(s), in March of 2010, were placed on hold until all land use rights, access rights, and confirmed property/claims rights, and road access/use rights could be verified and accepted. We are happy to report that each of these potentially very valuable copper-bearing properties was cleared of all encumbrances and purchasable. Medinah Minerals, Inc. (USA) had initiated a pending purchase offer of 10,000,000 (ten million) shares each for the two properties containing various claims encompassing 620 hectares (approximately 1,360 acres). Separately, the properties are identified and recognized by the El Conservador De Minas Chanaral region as “Sociedad Legal Minera Ciclon 1 Del Sector Sur Quebrada Salitrosa”, and “Sociedad Legal Minera Ciclon 2 Del Sector Sur Quebrada Salitrosa”. Each of the properties is inscribed as follows: Esta Sociedad Legal Minera se encuentra inscrita a fs. 126 Vta., No 226, con fecha 16 de Octubre de 2006, Tomo 28, y el haber social se encuentra dividio en 100 acciones.- Chanaral, 09 de Julio de 2010. This describes the registry of the company with the Chilean Ministry of Mines.
Medinah Minerals, Inc. (USA) finalized the purchase contracts to acquire a 10% (ten percent) ownership interest in each of the claims described independently as Ciclon 1 and Ciclon 2. President/CEO Juan José Quijano Fernández caused the contracts to be finalized and called a meeting of all parties at the Notaria Y Conservador De Minas De Santiago for representatives to be fingerprinted and to sign all documents. Each of the documents were agreed to by consenting parties, signed and formally notarized. The Ciclon 1 and Ciclon 2 ownership group immediately filed a request for approval of the ownership changes through the Chilean Ministry of Mines. Upon approval of the ownership changes, the document will be deemed a “publicly disclosed contract” and it will be placed into the Chilean Central Computer Registry. The activities of Ciclon 1 and Ciclon 2 must be reported, on a yearly basis, to the Chilean Ministry of Mines.
Information as to the activities at the acquired properties will be reported to the Medinah Minerals, Inc. (USA) shareholder body as they occur.
Medinah Minerals, Inc. (USA) now owns various ownership interests in approximately 12,000 hectares (approximately 30,000 acres) of mining claims in the Country of Chile.
Several introductions and meetings were conducted with prospective Altos de Lipangue Joint Venture Agreement representatives. Señor Quijano then introduced a litany of his activities with members of these interested parties. His many activities involved accompanying Presidents and Directors of Exploration of prominent mining concerns to the Altos de Lipangue group of claims via road and helicopter visits by each of three serious groups (see photographs on the Medinah Minerals home page under About Medinah/Photo Gallery). Further, Señor Quijano provided all materials relative to past drilling, trenching, and reports from various mining authorities to enhance and expedite their due diligence review and granted access to the core drilling samples. Two of the parties had visited where the core samples are housed. The third party will be examining the core samples this coming week.
Management will immediately review all offers as received. Señor Quijano vows to act quickly to bring forth a “funded” Joint Venture Agreement. Señor Quijano is well aware of the many years of non-producing negotiations, funding failures, and delays. He states he will entertain a lesser-ownership holding with a serious mining concern that has the financial ability and expertise to further prove up and develop the Altos de Lipangue group of claims to its full potential.
Board of Directors
