Medinah Minerals (MDMN)

[Hurricane_Rick]

Hey Lockman,

Yes, things turning back up after a brief downturn that compelled some to sell while also providing an opportunity for others to average down in what has turned out to be a picture perfect ADX/PPO pincher.

Anyone following the tape knows that Amarant Mining freed up $21 million previously allocated to XS Platinum by carving XSP out of the Alluvia Mining projects.

Last week Amarant finally funded one of their outstanding mineral projects in Mineral Invest. Funding for that venture had been delayed since Spring 2012 and had its share of delays. Ultimately they came through with $15 million. In my opinion it is NOT a coincidence that MDMN's share price began its reversal the same day that this news came through. And with a > 50% increase in share price off the lows of the week, it is clear that buyers stepped in with a renewed confidence that MDMN's funding is next.

With $6 million remaining from the XS Platinum allocation and Amarant owing $5.4 million to Medinah Minerals for cashing in 10% of their collateral in Alluvia Mining, it stands to reason that Amarant should be funding Medinah in short order.

Given the fundamentals pointing to Amarant funding Medinah shortly combined with the technicals of the ADX/PPO pincher showing strong signs of being oversold, it made for an excellent opportunity for those investors and traders inclined to drown out the noise that would otherwise preclude them from taking that trade.