Medinah Minerals (MDMN)

[Beth0515]

We'll find out the actual answers... when the meeting is held... only 10 days now till October 1st...
I anticipate a very informative meeting...

A word to the... umm... wise, Big Baboon. Our BOD and their partners are notorious for having meetings that promise the moon, chill the mad stockholders and prove to be little more than fairy tales. No disrespect to HR or Bald Eagle, two of the sharper commentators and we appreciate their sharing, but here is their take from the February 2012 "Informational Session" in Vegas. Do me a favor- count the true things we were told versus the ones that didn't pan out. Some of this stuff is flat out hysterical.

Notes From the 2/11/2012 MDMN Shareholder's Informational Session, Las Vegas, NV.

Here are some unedited notes from MDMN's Informational Session, held on Saturday, 2/11/2012. Thanks to Natedogg for compiling them (so I didn't have to!). Keep in mind that these are just quick notes/minutes. They do not provide all of the color, descriptions and qualifying contextual language. I would caution that if you are compelled to comment merely on the information on these notes presented here without having attended the meeting or without watching the live stream video to get the full context of what was discussed, then quite honestly you would be commenting from a limited and very rudimentary understanding of what was discussed, specified and implied. I encourage all who have not viewed the presentation to do so.

Here are the notes:

do we have a signed deal? yes
do we have money? its right there, they need to money up and do the drilling
180 million may be a very short price. There are clawback provisions to prevent us from missing out on added value.
The actual base value used was 2.2 billion dollars at todays prices
do you or do you not have a pr firm engaged? We do not have a PR firm inked up.
Is there a clause in the contract, that in the event the partner backs out, is there a payment held in escrow or some sort of failure to perform.
They have to drill right away, which means money is ready to go. We don't have to wait 9 months to see if this is a real deal, we have to wait for drills to turn.
What is the last trigger that finishes this deal before the NDA is lifted and we go into business? LP answer - All negotiations and DD have been completed for all 1508 claims. All that is required is the final signature. JJ gave 60 days to start drilling.
Do we have the funding in our bank account? No we do not but it is coming right away. It's as good as done. There are contingent offers. Major companies are unhappy they were not picked.
Handshake question - whats up with the corporate address? - this address was established to take attention off of Gregs house in california. whats up with bogdan borkowski? It is a private issue, there are numerous lawsuits, chile has been sitting on this for two years, it is JJs issue only and has nothing to do with Medinah. A result is expected shortly. what about partner A? They have retained a lawyer, there are two parts to the lawsuit - they want some funds returned
How can the bogdan issue be a private issue when it was public shares that were loaned out? It wasn't lent out by medinah, it was JJs private shares. How many shares? The amount is before the tribunal and is not settled yet. They are aware of the amount but are not sharing that.
What impact will the resolution of the Bogdan case have on the share price? It will depend on the courts decision regarding a buy back.
What has to happen before we will get the partners name? Referred to the news release saying the two principals need to meet, sign, and then the NDA will be lifted. It is the most complex mining contract LP has ever seen. Its not going to be six months down the road.
Larry Regis noted that we are now on a different level as a company. We are in a different mode. He alluded to them having access to better opportunities but was not specific. He said it will be nice!
What about dividends? Come to the shareholder meeting and it will be interesting. wink wink
Concern was expressed about the lackluster attitude towards using a PR firm by RoundMot - clap clap! Larry Regis said we don't have a PR firm but we don't need a PR firm for what is lined up. Greg Chapin drew attention to Jim Stock and mentioned how he was in a bad position doing IR for the company due to the many false starts. They want to be judicious with the shares regarding PR firms. They don't wanna waste money. They have developed an informational database with data mining to identify people who are mining editors etc.. They have 141000 names and email addresses and they can press a button to broadcast to them. They will do this when they get funding and can announce work is actually happening. they don't want to spend our shares willy nilly. They have 1.5 billion shares, and have kept more than half of those in reserve. Name another Penny company who has done this,
Has there been discussions with the partner about their intention to release a formal announcement. - There will be a formal announcement by the partner.
What does that final signature do if there's a completed deal? It's a formality. JJ is going back to Chile on Wednesday and there will be some resolution shortly thereafter. Whoo!
How long is the clawback period? The determination will be made within the 3 year period and most likely much sooner.
How will the 18000 meters of drilling be approached? How many holes? Some holes will be really deep, some others not so much. A specific number can't be given.
What is the timeframe for the drilling? That is the partners decision. They have 3 years.
What is the timeline for production? Its not gonna be 3 years, it doesn't work that way. It could be a few years down the road.
What can we do to prevent the partner from not proving up the property value to our satisfaction? We have to depend on the geologists.
What are the nature of the contingent deals? One of the losing out partners is offering on the ciclon projects (a potentially huge deal). The other one is saying, if the current partner doesn't perform, we will take the deal along with the ciclon claims.
After the signature signing, will there then be a notario process? No. Everything is done. We are ready on every front. It is simply an administration activity at this point.
What are the next steps after the final signature is done? Theres not anything else to be done. We're telling you its done. It's done.
Is there anything preventing the company from releasing some of the due diligence has been done? They will share a lot more in the near future when they are certain it will not affect the deal.
Will there be any surprises regarding environmental issues or restrictions? This has been looked at extensively along with safety issues and many things have been addressed. This will not be an issue.
How soon will the money clear after the signing? We will be notified in real time as soon as the money arrives.
Will we get incremental updates on the drilling? From a business standpoint, the contract really motivates the partner to proceed as quickly as possible. There is no economical incentive for them to move slowly. We will be informed of all things they are able to release as they happen. We are no longer a junior exploration company, we are a capital company!! We will be the object of many different kinds of offers! Calls are coming in!
Are drill results coming for the drilling that has taken place? Yes
Uh Oh, Roundmot is causing a disturbance! It's heating up!
What is different about this contract? The people who they are dealing with have capabilities to perform and have no problem signing documents with several protections for the shareholders.
What makes this contract more secure than the previous one? The new partner has done a tremendous amount of due diligence and when we find out about it, it will be impressive. Essentially, the new partner is more reputable.
What is different between a JVA and a purchase agreement? Joint venture involves Medinah doing more mining work.
Is our partner a publicly traded entity? Yes!!
Is there a risk the partner will take our property and put it on a shelf? They won't do that because our property is so important and it is not in their best interest to do so.
In hindsight, the BOD wishes they had kicked partner A to the curb much earlier.
The new partner is very well funded, they are capable, and are offering us the best possible scenario.
When do we get the 15 % retained interest payments and what are they based on? Once in production, we would be paid monthly.
There will be information on the web site regarding the video of the information session.
JJ added, this current contract is different because even if they find nothing on the property, they have to pay us 180 million. He believes there is 6 or 7 billion worth of gold on the mountain. The real prize for us is the 15% that we have to do nothing for! This is a no lose situation for us!

The following is a brief summation by BaldEagle on MP which I feel captures the overall sentiment from Saturday's session.

The Negatives

The first half was rough and very unsatisfying for those looking for details.

No PR firm signed as of yet (caveat: later in the meeting they made it clear we were partnering with a public company and a PR firm would be signed post deal. The intial PR will be established by our partner fo' free).

The company claimed that the Bogdan issue was a private matter. Flat out wrong. JJ lent out shares (part of our outstanding shares) and it is a very public issue. Down the road, as we become a big boy company, the BOD will need to be polished in what is or is not factual when it comes to discussing corporate governance and proper disclosure.

Use of the words like "semantics, administrative, etc." when discussing where we are in completing the JV are way too reminscent of they type of language we have heard in the past.

The obvious. We don't have a done deal until it is a done deal.

The Positives

The second half was night and day with the BOD letting their guard down a bit in disseminating details.

I feel comfortable, with a 95% probability, this deal will be done in 10-14 days.

We are dealing with a publicly traded major mining company who has requested that their PR precedes ours.

The BOD, IMHO, appear to be determined, competent, and very confident.

The terms of the deal are incredible. The 15% carried interest is self-explanatory. The "claw back" premium to the 180 million is very important to understand. The $180 million is set at a very low bar, one we have already surpassed ($2 billion in proven reserves). The conservative whisper on what 18k meters of drilling will generate is somewhere (according to JJ) around $7 billion. The question was asked if this deal would appreciate in a "linear progession." At $7 billion you could make the case that the money received after the drilling could exceed $500 million.

My guess would be 18k meters could be acheived in 20 months or less time vs. the 36 month timeline. The present value of $500 million or $250 milllion after splits would get us close to 30 cents a share in cash. Big numbers.

More to come after tomorrow.