Replies to post #64131 on Medinah Minerals (MDMN)

[Medinaminer]

It would have been refreshing and exhilarating to have received an announcement today that was fully executed and all contingent items already removed by both parties.

But it does not surprise me that updates and announcements from this company will always have the same template, meaning, incomplete and full of holes and always leaving us in limbo as to who needs to take what action to close on a mutually agreed contract.

Verbiage such as these bring to rise questions on the legitimacy of the existence of any real deal.

For all the time it has taken so far since the property was back in play, one would think all the relevant issues would already have been ironed out and by now we should have been presented with a fully baked agreement, signed, sealed and delivered.

I don't think it's asking for too much for an agreement with a proper suitor, to be completed by now.

[janice shell]

Yes. Doesn't sound like a done deal to me.

[Hurricane_Rick]

Regarding the confusion or misinterpretation of what "due diligence" entails with regard to the current JV offer on the table, Cornhuskergold addressed this quite well in the MP blog...so I don't have to ;-)...

"1. There is a distinction between MMI (the North American OTC entity we call "Medinah") and its 100% owned subsidiary in Chile (MMC). Ignore that this is all about a handful of guys that all know each other. This is formal / legal organizational language. And this is where all the analysis and analogy with purchasing a house is falling down. There are three entities here, MMI, MMC, and the offering party. This Update is telling us about the actions of one entity (MMC) toward an external party (the offering party) and subsequently toward Medinah Minerals (MMI). MMI is reporting to us, the shareholders, about the report they have received from MMC. It is same type of formality and perspective that Medinah has always used in its Updates.

2. MMC reported to MMI that MMC accepted an offer. It is a signed binding legal document. [Q: can this legal agreement be broken? A: sure. any legal agreement can be broken. that is not relevant to this discussion.]

3. MMI, not MMC, is the one going to do the "due diligence" because MMC, not MMI, accepted this agreement and MMC, not MMI, is the most familiar with the offer, the terms, the conditions, the deliverables, etc. MMI needs to go, review and approve the terms and conditions, take the registration steps, and then return and report that MMI has formally approved and registered the MMC contract and is bound by it. I don't see "due diligence" as being any more than that. It is MMI going through an official formal corporate process to review, approve, and register the agreement negotiated and accepted by MMC. Again, this sounds silly, because it's a handful of guys who all know each other well. But they are trying to be formal, exact, and diligent. If anything they are erring by trying to be formal almost to the point of being clumsy.

4. What exact legal processes or exactly what formal steps "due diligence" entails is admittedly unspecified. Is it possible that it involves more than showing up at the notario for 30 minutes and then partying for 2 days? Yeah. Does it involve a day of review, a day at the notario, and one day of partying? I don't know. I don't care. None of us cares as long as they get to the partying part after completing the first parts. But this ambiguity due to our unfamiliarity with the process doesn't mean that "due diligence" indicates ongoing risky negotiations of terms or conditions, or that the current accepted offer is nothing more than a high level LOI easily thrown in the trash can.

So I believe it is very clear that the first original offer is the one that has been accepted. It is very clear that Mr. Letts is associated with this offer. It is clear that after this offer has been accepted that no other offer can be considered or accepted as long as the first offer is still binding. That is our status. Is it theoretically possible that it could still fall through? Sure. Any agreement process can fall down. Given all that we know, is that reasonably plausible? No, IMO.

But it doesn't matter in the end, as this current status should be a short one and more specifics should be out in a few weeks.
If some in the meantime want to be more cautious and believe we are only one step ahead of where we were with Mr. U and are afraid that Medinah may yet snatch defeat from the jaws of victory that's up to them. But in the end I do agree with BE that you are over parsing "due diligence" without paying attention to the overall context and the rather clear language of the rest of the Update."

http://theminingplay.freeforums.org/post737.html#p737