During the fourth quarter of 2016 Medinah Minerals, Inc. obtained and reviewed documentation received from some of its former directors and service providers regarding the previously reported discrepancies in its financial disclosures.  This review caused Medinah to file a lawsuit against Les Price, Pamela Fitzpatrick, and two companies controlled by Price.  The lawsuit can be found on our legal page.  In addition, further defendants are referenced as various John Does or John Does (Company).

As the investigation progressed our transfer agent, ARTCO,  provided a complete record of all share transactions and transfers since Medinah’s inception and all board resolutions and correspondence regarding share issuances since 2010.  These records have been entered into a searchable database for ease of analysis.

Two weeks ago our legal counsel helped us retain the services of Anti-money Laundering Specialists, LLC (AMLS).  AMLS specializes in Forensic Accounting and investigations.  Shannon Hodges, a principal at the firm, is leading the investigation.  Ms. Hodges brings over thirty years of relevant experience.  This includes a significant block of time as a Special Agent with the Criminal Investigation Division of the Internal Revenue Service, experience with analyzing international banking transactions to identify suspicious activity, and two years as the primary IRS Criminal Investigation liaison with US and foreign law enforcement agencies in many countries, including the United Kingdom and Western Europe.

With the help of AMLS, we are expanding the scope of our investigation to determine which additional individuals and companies to add to the aforementioned lawsuit.  Every share issued and dollar brought into the company will be thoroughly analyzed and traced.

Forensic auditing is a detailed process.  Among other things, it includes a thorough review of every share issuance and financial transaction.  We will look to make sure each issuance has:

  • a valid board resolution authorizing the issuance,
  • bank records validating the payments for shares,
  • service contracts validating payment of shares for services,
  • and a cash flow analysis to ensure that the money raised was properly used.

This will occur as we undertake the process of discovery and issue subpoenas for accounting and bank records from all relevant parties.  In an effort to expedite our investigation, claw back as many wrongfully issued shares as possible, and recover as much money as possible that was in anyway tied to the issuance of these shares, we will focus on the original parties to the lawsuit and a small number of shareholders (individuals and companies) who were involved in purchasing over one billion shares in aggregate arising from questionable transactions over the last fifteen years.

Although the effort to bring justice to those who perpetrated the fraud or were part of any scheme involved may be time consuming and costly in the short run, the board of directors believes it is the appropriate action to take given the potential impact on Medinah’s common shareholders.

Our hope and conviction is that AURYN will succeed in monetizing the Altos de Lipangue project. If it does, our desire is for the rewards to go the common shareholders and not those whose actions have damaged the company or who have profited from wrongful activity.

Submitted on behalf of the Board of Directors