Medinah Minerals (MDMN)

[Beth0515]

It seems to me that there are people using pure supposition and unfounded scenerios to describe what MDMN or JJ is doing. It would appear that these people have so much information on how to manipulate these scenerios that in truth they have done these types of nefarious things themselves.

No one on this board has any idea of what JJ is or isn't going to do with his shares. The shares seem to be the purchase of the assets of MDMN Chile. Please enlighten us as to a factual scenerio other than the purchase of those assets.

Very good point, Mike!

Our company seems to have regressed in terms of disseminating information of new developments using clear and concise language. We're in danger of regressing to the "each update brings more questions than answers" behavior of the past.

But to answer your specific question, no, there has definitely NOT been a purchase of assets. What has happened is MDMN has acquired the remaining 49% of Medinah Minerals (Chile), S.A. from Juan Jose Quijano Fernandez and his family. To acquire this, MDMN provided the MDMNCSA stockholders 35 million shares of preferred stock which has preferential rights to future MDMN earnings.

There are also convertible aspects to the preferred shares, but you should ask smarter people as to how that works, as I'm still not clear. You can read about our previous 51% interest in MDMNCSA in Note 4 of the 2012 financial statements. You can also be certain we will not be reading any quantification of the dilutive aspects of this transaction, nor specific detail of insider holdings, until the company retains a competent CPA firm and issues complete statements, but on that one I'd not hold my breath if I were you.

Apparently, we are to presume this transaction occurred to facilitate a potential joint venture with a counter-party who would prefer partnering with one claim-holding entity. We may also presume that this transaction did not fall under the purvey of Chilean rules regarding ownership of mineral interests as MDMNCSA is still the owner of record of the underlying claims.

I would caution you to be very skeptical when reading that JJ et al has somehow lost "control" of MDMN in this transaction, as this is certainly erroneous. Between JJ, his family, and other inside parties you can rest assured that control still remains firmly entrenched in Santiago.

Good luck getting more detail-- I'd say it is like pulling teeth, but that may be a poor pun in this instance.