Medinah Minerals (MDMN)

[Hurricane_Rick]

All rightful venting aside, you are mischaracterizing Amarant's (Conventus' and Ulander's) stake in the game thus far.

Continuing on, then comes the $18M of cash, all again from selling the worthless paper to unsuspecting buyers of this stock that will be floated out there this coming spring, because Amarant has purchased 85% of Medinah, 100% of another company, 15% of another, 47% of another and on and on. So it looks as though Amarant is potentially sitting on tens of Billions dollars worth of metals and minerals, all for nothing down and a bunch of paper that is sold to others who are happy to hold that paper who think they are going to get filthy rich. Ya know my dear brothers and sisters, investing in stocks and making a killing is not that easy folks. There aint no free lunch.

Consider the following:

1) As of September 2011, Conventus/Ulander paid $15 million into Alluvia Mining (nee XS Platinum Ltd.) in exchange for equity in the company. It is possible they contributed more, but I cannot confirm that until their 2012 annual filings get published.

2) As of November 2011, Amarant Mining paid $10 million into Alluvia Mining (nee XS Platinum Ltd.) in exchange for equity in the company. Again, they might've contributed more, but I won't be able to confirm until their 2012 annual filings get published.

3) In December 2011, Amarant Mining, through its Gold Crown subsidiary, paid C$7.425 million to Huakan International Mining for the Greenwood Gold Project. They paid nearly a 40% premium due to delays in closing the transaction which took 9 months and 11 date changes. Not pretty, but they eventually paid...in cash, not stock.

4) Amarant (Gold Crown) and Huakan renegotiated payment for Greenwood Gold's 2% NSR terms of their original agreement in which Amarant purchased the NSR for C$4.5 million. Amarant has paid $530,000 ($30K in late fees) thus far and owes $4 million by 2/4/2013.

5) Amarant paid $15 million for 50% control of Mineral Invest.

6) Amarant purchased 54 million shares (30%) of IGE Resources for a premium which I believe came to near $9 million.

7) Amarant's majority owners injected $38 million to provide the company with working capital and to refinance previous financing commitments.

This also does not include their payments to Global Gold Valdivia (too much to dissect at this time), how they paid for Willow Creek Mine in Colorado, etc.

So I do somewhat scoff when people say that Amarant is "robbing Peter to pay Paul" as if they are using Monopoly money in the great financial ephemera to pay for their purchases. Amarant has plunked down some serious cash thus far to build the company, and they carry some serious debt obligations as well.

Now, turning towards Alto de Lipangue, Medinah has obviously not been treated with the same sense of financial urgency as Amarant's other investments. At least, that's how it appears thus far by Amarant's actions and public disclosures. The Alluvia Mining collateral, why seemingly worthless to MDMN shareholders (because we want Amarant to commit to ADL with cold hard cash), is quite valuable to Amarant since the company was pretty much borne out of the idea of utilizing the AuVert Recovery System to monetize their various placer properties...and Amarant has a great deal invested in AuVert and Alluvia Mining and is pretty much banking its entire existence on its success.

Don't get me wrong, I'm not giving Amarant a pass here. MDMN shareholders have suffered greatly with a 1-year delay and a 50% or more haircut in our market cap. And it has been a slap in the face thus far to MDMN shareholders that Amarant has claimed 85% ownership (recently edited to "85% interest") on their website, when they haven't made the financial commitment to Medinah other than the collateral shares in Alluvia Mining. While JJ and Medinah is obviously sticking with Amarant as its purchasing partner for ADL, MDMN shareholders don't share that same comfortable feeling with Amarant as a year's delay in execution has tormented the shareholders who by all reasonable expectations were looking towards the first committed tranche and drilling to be completed already. However, there has been a snowballing cause-and-effect situation that began with the issues Amarant had closing its 500MSEK bond offering in 2012 due to its financial partners not coming through on their financial commitments. While Amarant admitted there was a 4-month delay in closing the bond offering, it set back the company's plans some 9 months or more. And like all of the Amarant subsidiaries and investments, ADL was not immune to it. Unfortunately for MDMN shareholders, ADL appears to be one of the final obligations that Amarant needs to make good on. Unfortunately, regardless of their commitment to the project, I don't think Amarant will win over MDMN shareholder sentiment until they pay the $5.7 million Alluvia collateral obligation, pay that first $18 million tranche, and begin their exploration program in earnest.