Medinah Minerals (MDMN)

[Hurricane_Rick]

Amarant has said multiple times they have an 85% interest. MDMN has said multiple times Amarant is in full compliance with the deal terms.

Amarant does have an 85% interest, though it is with obvious contractual contingencies. One of those being that they had to collateralize their payment obligation with $54 million worth of shares in Alluvia Mining - which Amarant did.

Another term of the agreement is that Amarant will need to pay $18 million annually towards the $180 million payment price. The contract was effective July 12, 2012. While Amarant has yet to pay the $18 million, the annual window for that payment has not expired...making Amarant still fully compliant with the terms of the ADL Purchase Agreement.

Another term is that Amarant must spend $5 million (minimum) towards a drilling and exploration program on ADL in Year 1. Both companies expressed the program would begin in September 2012, though it is not clear whether that was a contractual obligation or merely an intention. Medinah confirmed several times that Amarant's exploration funds are in place, though they were delayed.

The $5.4 million Alluvia Mining share buyback is a separate agreement (referred to as the "Sales Contract") from the ADL Purchase Agreement. This payment is assumed to be late given the expectations set forth publicly and the $300K increase (presumed to be a good faith penalty) from $5.4 million to $5.7 million.

So by all counts, Amarant is still in compliance with the terms of the ADL Purchase Agreement, though they are behind schedule in what was anticipated by both companies at this point for the project.