Medinah Minerals (MDMN)

[Hurricane_Rick]

Volcan doesn't want to become a minority shareholder of a pinkie with two billion authorized shares. It makes ZERO sense as they can craft whatever economic benefit they want by negotiating a JV. Given the embarrassing history of our company it is MUCH more likely Volcan (again, IF there IS a Volcan in this mix) would want to keep MDMN at arm's length.

I'm not so sure about this. Granted MDMN is not a pretty picture from a public company standpoint. They have 1 billion O/S, trade at .04 and are an OTC pink sheet reporting company with unaudited financials. However, they do own 100% of MDMN Chile which owns ADL - an inescapable fact for the moment. Ideally an acquiring or joint venturing company would prefer its target to be a fully-reporting company on a major exchange, but does that preclude the major (I'm using the term "major" loosely here) from considering a mineral deposit that they may otherwise wish to pounce on? I don't necessarily think so.

Consider this...there were 6 prospective entities in discussions to JV/acquire ADL this go-round as reported by the company (via JJ) in its July 22, 2013 Shareholder Update. We can all apply our own degrees of skepticism to that contention, but for argument's sake let's take that at face value. Let's also presume that more than 1 of these entities were serious about their offer. If Partner C earns less than a 50% stake in the ADL JV (presumably via acquiring stakes in the Medinah Minerals Chile entity), what is preventing one of the other entities that got rejected in the ADL negotiations from buying up MDMN shares (rather cheaply all things considered) to establish a backdoor controlling interest in the JV?

Even if "Partner C" has no interest whatsoever in MDMN for the reasons you cited, how will they prevent another entity from taking a backdoor route to gain some kind of significant ownership control of ADL via majority ownership in MDMN? Now you may argue that this scenario is far-fetched given the current state of affairs. However, assuming a JV occurs and drill results turn out to indicate the "world class" potential that many believe, I would think this scenario becomes a possibility. And regardless, I think it STILL has to be a consideration that "Partner C" has to protect its interests from.

On the MP last week I had posted that it is my speculation that "Partner C" will in fact take an equity position in MDMN for the reason of maintaining as much control of the property as possible. I also believe they will have a representative on MDMN's BOD and this may be one of the items up for vote at the AGM. I have no way of knowing this and it is merely my unfounded speculation, but I think it has a plausible reality to it. I know if I were "Partner C" and I'm entering a JV with a company for its flagship property, I'd want as much representation and control that I could possibly get.

I believe JJ's "gifted" 30% of Madre de Dios placer property has something to do with this as well (perhaps a teaser) and I believe this is one of the items on the docket of the current S. American trip. I believe JJ's share ownership restructuring has to do with this as well. I also believe that is why MDMN filed their 15c-211 with OTC 6 weeks ahead of time...so the books (as imperfect as they are) are at least in order within the market tier they trade on. I am also speculating that this may have been a requirement by "Partner C". I know you probably rolled your eyes at this line in last night's update "We cannot emphasize the significance of this major accomplishment too strongly...". But it did seem odd that the company would amplify the significance of this "achievement" which, after initially making the tier jump to "OTC current" 2 years ago, shouldn't really be a noteworthy accomplishment IMO. It is probably nothing, but I am noting it nonetheless.