Replies to post #56398 on Medinah Minerals (MDMN)

[Anvil]

myrtle222, HR would be able to give a clearer understanding of the connection. But Amarant owns a large percentage of IGE which is now involved in an accounting mess, as you may have read. This mess is rumored to have taken Mr. U's attention and may be a reason if the ADL does not fund.

The pertinent issue is, I see all the Amarant businesses, whether wholly owned, majority owned or minority by Amarant as being tied to Mr. U's wallet. Amarant, in its short history, has a trend of buying properties from cash strapped companies and stringing them out for payment.

So I see IGE's lack of liquidity to close a deal as just another example of Amarant's lack of liquidty to close the ADL. Which I don't think will ever close.

And despite Huakan getting late fees, they are nice, but only if they get paid.

[Hurricane_Rick]

Huakan isn't part of the consortium IMO. They were just the former owners of one of Amarant's properties.

The reason Huakan is of significance to Medinah is that, like Medinah, they are dealing with a property sale to Amarant Mining...or rather one of Amarant's subsidiaries in Gold Crown, which is now part of Mineral Invest, though still under the Amarant umbrella. Like Medinah, Huakan has had its share of delays in closing their transactions with Amarant/Gold Crown. The initial property sale of Huakan's Greenwood Gold Project took over 9 months and 11 extensions before completing. Gold Crown paid a 40% premium in late penalties. Part II of the Greenwood Gold Project was Gold Crown's desire to buy out the 2% NSR provision that was a leftover term from the original property sale. This transaction has been delayed 3x (now 4 including today's news) and has been renegotiated along with Amarant/Gold Crown paying the late penalties. However, this is all now falling under Mineral Invest's responsibility since they bought out Gold Crown.

The key about Huakan is that because they are a publicly reporting company, they disclose a lot more information, and have PRed every delay and renegotiation with Amarant/Gold Crown. It provides a glimpse into the financial machinations that Amarant has gone through in trying to close one of its property purchases. Unlike the "Partner A" debacle from 2011, when people start to call this a scam or that Amarant is just stringing MDMN along, we can see publicly what Amarant's M.O. has been. We know that although it is absolutely ridiculous that the deal was first publicized 13 months ago and Medinah has yet to be paid, at least we can compare the parallels to how Amarant has operated with their obligations to Huakan Mining and know that Medinah isn't the only company being strung along by Amarant getting their finances in order.

There's a bit more to it then that, but that's the main reason for following the Huakan Mining story.