Medinah Minerals (MDMN)

[jetpilot1101]

Well it is official. One of Amarant and Ulanders biggest supporters has thrown in the towel. Mike Gold is done with them.

http://theminingplay.com/viewtopic.php?f=12&t=737

Good morning,

I have decided that NOW is the time to work on a letter from shareholders to Management that clearly states our opinion regarding the failed execution of the purchase agreement.

This will be a little difficult as there isn't necessarily a clear consensus among shareholders on exactly what is going, what the facts are or what needs to be done. Still, if we can come up with a unified voice, we just might get Management to take notice and perhaps help our investment in the process.

Please note this is my own effort. There is NO consensus from MP ADMIN on this matter.

Here is a strawman that I have come up with. Let me know what you think. I know we have a couple good writers out there who could polish this up into a thing of beauty..please feel free to do so. I am willing to sign any letter that we come up with that a majority of shareholders support. Thanks in advance!

From: Medinah Minerals Shareholders
To: Board of Directors Medinah Minerals

Subj: Termination of July 11, 2012 Purchase Agreement for the Alto de Lipangue Mining Claims


1) Based on a review of all publically available information, it is concluded that it is in the best interests of all Medinah shareholders that the Board of Directors of Medinah Minerals vacate the current purchase agreement between Medinah and Amarant Mining for the Alto De Lipangue mining claims as soon as legally possible in a way that would not put our mining claims in any legal risk. Under NO CIRCUMSTANCES, should a contract extension be granted. All communications with Amarant Mining should cease. If legally necessary, the shares of Alluvia should be returned. Any funding less than the complete initial tranche of $18 million combined with monies of the 10% of Alluvia shares, plus required $6.7 million for exploration should be refused.

This is necessary for the following reasons:
a) Amarant Mining and their principal investor-Mr. Johan Ulander have demonstrated their complete lack of ability to develop the Alto Project. They have no track record of success; only of failure.
b) To date, Amarant has failed to hand over a single dollar towards completing the purchase agreement. We are not a single day closer to develop the Alto project than we were at the last shareholder meeting more than a year ago.
c) Amarant has failed to repurchase 10% of Alluvia shares as required by contract.
d) Amarant/Ulander misrepresented themselves to the Board of Directors on their ability to purchase/develop the Alto project.
e) Amarant/Ulander have made countless verbal promises on executing terms of the purchase agreement that they have failed to live up to.
f) Johan Ulander failed to properly disclosure all aspects his criminal history to the Board of Directors prior to the signing of the purchase agreement.
g) Amarant/Ulander are facing possible criminal charges and lawsuits as result of their actions with IGE Resources which could farther retard/complicate their ability to develop the Alto or fund the purchase agreement.
h) Amarant has posted false/misleading information on their website regarding the Alto purchase agreement and their ownership of it. They also posted information regarding exploration of the Alto which demonstrated their lack of competence and understanding of the Alto Project. Their geologist has little or no experience with exploring gold/copper poprhyry systems. They also have little or no experience with doing business in Chile and failed to obtain required permits in a timely manner to start drilling.
i) Amarant has conducted business in a similar fashion with a number of other companies; all to the detriment to those companies.
j) Amarant has lost all credbility with the mining investment community. There seems to be little chance that it could ever be restored. It is likely a funded purchase agreement with Amarant will result in little or no improvement of the share price as investors simply don't want to have anything to do with Amarant.
k) Amarant's purported "consortium" that they are putting together to develop the Alto Project is highly suspect as few if any legitimate companies would do business with Amarant going forward considering their tarnished record. Certainly the risk that consortium members pulling out is very high further hindering development of the property.
l) Amarant has failed to commence drilling/exploration of the Alto project on time and now have no chance of meeting the purchase agreement deadline.
m) The shares of Alluvia Mining given as collaterial have no market value and little prospects of it having value in the future. Amarant/Ulander and related parties have failed to properly develop value in Alluvia or go IPO. More recently, despite promises to the contrary, they failed even to get the shares listed on a minor exchange and have unlawfully attempted to move assets into Alluvia.
n) In a nutshell, doing any kind of business with Amarant is a liability to this investment. The sooner Medinah Minerals has nothing to do with them, the better.

2. The Board of Directors of Medinah Minerals should immediately pursue a new purchase agreement and/or joint venture with a reputable major mining company that has the resources and expertise to properly develop the mountain. The terms of the new agreement should be reasonable and represent the current market value of the property as determined by viable partners. (Not as valued by risky investors or other groups that don't have a proven track record of success.) As what has become very obvious, a 15% free carried interest has little value if the partner lacks the ability to develop the mountain. A sizeable amount of cash up front should be required at contract signing.

3. The BOD should regularly update shareholders regarding progress in obtaining a new agreement in the most transparent way possible and not use any NDA in a way that prevents shareholders in accurately assessing the current value of their investment.

Sincerely,

Etc.

He goes on in a response to another poster...

In no way do I want to bash Management over this. It is understandable why Juan wanted the 15% free carried interest and thought it worth the risk going with a group like Amarant in order to get it. Sure it was a mistake. However, the damage has already been done so it makes the most sense to stop digging the hole we are in any deeper and start working towards a positive outcome for us all.

...and there's more

Terminate ASAP. I believe they already have grounds for termination. In any case, I believe May 11th will come and go without result like all other previous dates we have heard about.

...and more

Ulander/Amarant are more a liability than an asset. They have NOTHING of value to offer us. Medinah does NOT need their money. Who wants funding from what appears to be a criminal enterprise(too harsh perhaps but they have no legitimacy in the mining investment community for sure.)? Medinah has perfectly reputable major mining companies that will joint venture with them to develop the property. I hope Ulander does NOT fund.