As 2017 ends we offer a summary of what has happened since we discovered the share discrepancy issues in August 2016 and we share our plan for Medinah Minerals, Inc. (Medinah)
Summary of 2016
On August 23, 2016, the company reported that it had 2,996,448,498 common shares issued and 4,122,200 preferred shares issued. The company purportedly had over $2.5 million in debts. Our primary asset was a 25% equity stake in AURYN Mining Chile SpA. (AURYN)
Most of the preferred shares carried a $0.10 per share per annum dividend owed since 2012. Other preferred shares had onerous conversion rates and appeared to be fraudulently issued. Common shareholders would have with next to nothing had all preferred shares converted, received annual dividends, and/or otherwise exercised their rights as preferred shareholders.
In 2016 the company dealt with multiple lawsuits. First, the company was facing significant legal action from Okanadian Management Corp which threatened to bankrupt Medinah. Additionally, we were sued by Les Price and GXK Ventures Inc., one of Price’s companies. Furthermore, we had to inform our most significant shareholder and the majority owner of our primary asset that Price misrepresented Medinah throughout its negotiations with AURYN.
Misreported financial disclosures, purported debts and fraud, favorable deals for preferred shareholders, misrepresentation, a Stop Sign on the OTC Pink Sheets, little to no cash, no revenue opportunities, and defending against three aggressive parties – that was Medinah at the end of 2016.
Pink sheet companies in this condition rarely survive. At best, they normally get liquidated or diluted and reversed, leaving the common shareholder with nothing but worthless stock.
Summary of 2017 – Cleaning up the Mess
With support from AURYN, friends of the company, and the board of directors, company management worked tirelessly in 2017 to save the company and clean up its books. Here are our results.
- Medinah settled with Okanadian Management Corp. and won a legal judgment against Price for the cost of the lawsuit and settlement.
- Medinah brought a countersuit against the Price parties for the issuance of unauthorized shares and misreporting. This effectively ended Price’s lawsuits against Medinah and forced Price to provide to Medinah all shares (common and preferred) that he owned in Medinah, Cerro Dorado, American Sierra Gold and AURYN.
- Medinah reached agreements with shareholders who were friends of the company and also suffered from Price’s misrepresentations.
- Medinah negotiated with AURYN to resolve its cash call so that Medinah could keep its ownership stake in AURYN.
As of our most recent filing, Medinah had reduced its common shares outstanding to 2,881,282,073, and will have 0 preferred shares by year-end. The company owes $1,648,140 to Auryn Holdings Corporation for covering its cash call to AURYN Mining Chile SpA. In addition, the company has approximately $375,000 in legal bills and debts to a creditor friendly to the company.
Although our balance sheet is not strong, we have survived, and the company still owns a significant percentage of the Altos de Lipangue mining district via its ownership in AURYN .
As we move forward into 2018 we are pleased to make the following announcements.
Satisfying our Debt to Auryn Holdings Corporation
Medinah has satisfied its $1,648,140 debt to Auryn Holdings Corporation by assigning to Auryn Holdings Corporation 2.91% of our 26.469% stake in AURYN. We arrived at this number by assigning Medinah a valuation of $0.005 per share, fully diluted, and imputed the value to our AURYN holdings. Medinah now has no debt to Auryn Holdings Corporation and a 23.559% stake in AURYN Mining Chile SpA.
Auryn Sells its Assets
AURYN Mining Chile SpA announced that it has sold its mining concessions to Cerro Dorado, Inc. (Cerro) for 95% of the 7 billion issued and outstanding shares of Cerro. AURYN’s only asset is now 95% of the outstanding stock of Cerro. These shares have a one-year restriction on them.
AURYN has informed Medinah and the rest of its shareholders that AURYN will be exchanging its shareholders’ AURYN stock for shares in Cerro, pro rata, as soon as practical. When this transaction is complete, Medinah will own 1,649,130,000 shares of Cerro with a one-year holding period. This is in addition to the shares of CDCH that Medinah already owns.
One Mining District – One Company
The Altos de Lipangue mining district has always had the potential of being a successful mining region but claim fragmentation and lack of vision prevented it from being so. It took AURYN several years to consolidate the claims. It is time to combine the companies and give all the shareholders direct ownership in those claims.
To this end Medinah plans to satisfy its financial obligations as quickly as possible and distribute the remaining assets to our shareholders before ceasing operations. We anticipate this will leave 1.61 billion shares of CDCH to our Medinah shareholders pro rata. This is a ratio of 0.558 shares of CDCH for each share of MDMN that our shareholders own.
Merry Christmas and Happy New Year.
Submitted on behalf of the Board of Directors
This news release contains certain “forward-looking statements” within the meaning of the United States Securities Exchange Act of 1934, as amended. This forward-looking information includes, or may be based upon estimates, forecasts and statements of management’s expectations with respect to, among other things, the completion of transactions, the issuance of permits, the size and quality of mineral resources, future trends for the company, progress in development of mineral properties, future production and sales volumes, capital costs, mine production costs, demand and market outlook for metals, future metal prices and treatment and refining or milling charges, the outcome of legal proceedings, the timing of exploration, development and mining activities, acquisition of shares in other companies and the financial results of the company. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially and substantially from those anticipated in such statements. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that mineral resources will be converted into mineral reserves.