Medinah Minerals (MDMN)

[Toxic Avenger]

http://www.businesswire.com/news/home/20150117005004/en/Medinah-Mining-Chile-Announces-Formal-Signing-Option
Medinah Mining Chile Announces Formal Signing of an Option Agreement to Purchase All of the Shares of Compania Minera NUOCO Mining, S.C.M.
January 17, 2015 09:42 AM Eastern Standard Time
LAS VEGAS--(BUSINESS WIRE)--Saturday, January 17, 2015, Medinah Minerals, Inc. (OTC PINK: MDMN) reports that its 100% owned Chilean subsidiary, Medinah Mining Chile (MMC) has now provided notice that the Option Agreement among the parties, Medinah Mining Chile (MMC), Compania Minera NUOCO Mining S.C.M. (NUOCO) and AURYN Mining Chile, SpA (“AURYN”), has now been formally signed and notarized under Chilean governing laws that grants to AURYN the ability to earn up to 85% of the shares of Compania Minera NUOCO Mining S.C.M.

By Option Agreement, AURYN Mining Chile SpA can earn 60% of the NUOCO Company shares by completing a minimum of 5,000 meters of diamond drilling as well as conducting geophysical and geochemistry work matters. AURYN, upon signing the Option Agreement, immediately engaged the firm of Geodatas Chile, by contract, to commence an airborne magnetometry survey and ground I.P. study of the NUOCO property and abutting Altos de Lipangue claims.

Should AURYN continue to the secondary leg of the Option Agreement they will invest a minimum of U.S. $2.5 million dollars to conduct a full feasibility study in order to earn an additional 25% of the NUOCO Company shares. By completing these requirements AURYN would then earn in 85% of the shares of the NUOCO Company.

All costs for the Option Agreement will be the responsibility of AURYN Mining Chile SpA, with no costs assigned to the NUOCO Company. Should AURYN choose to vacate the Option Agreement the NUOCO shares, materials and property claims would remain with NUOCO. AURYN´s Option Agreement period expires on or before August 31, 2017.

If AURYN exercises the full terms of the purchase Option Agreement as to the Altos de Lipangue, and then fulfills the terms of the NUOCO Option Agreement, Medinah Mining Chile has the right to purchase from the NUOCO Company the remaining 85% of the NUOCO Company shares. Medinah Mining Chile, already an owner of 15% of the NUOCO Company shares, would then aggregate 100% of the NUOCO capital, which 85% would be earned in by AURYN through completing the provisions of the Option Agreement.

In a separate notarized contract transaction, under notice by AURYN, Medinah Mining Chile was required to make concessions to comply with shortfall provisions in the Altos de Lipangue/AURYN Option Agreement. In order to meet this obligation, NUOCO Company provided title as to three of its Columbo claims to the benefit of Medinah Mining Chile. The NUOCO Company maintains in excess of 2,000 Hectares after providing the required claims concessions.