October 2, 2016
On Saturday, October 1, 2016, MEDINAH Minerals, Inc. (OTCMARKETS: MDMN) participated in AURYN Mining Chile’s Informational Meeting in Las Vegas, NV. During the meeting MEDINAH discussed its current financial position and made further disclosure regarding its 15c211 discrepancies.
MEDINAH has retained the law firm of Holland & Hart to represent it and direct an independent forensic investigation into its financial and share issues. Additionally, the firm will prosecute all necessary legal actions and will defend MEDINAH in the pending Okanadian legal action. J Stephen Peek and Holly Stein Sollod will serve as the lead attorneys representing MEDINAH.
During the meeting MEDINAH announced that Greg Chapin and Les Price signed an agreement on August 23, 2016, cancelling all alleged debts owed to them by MEDINAH. In addition, former directors and officers Vittal Karra and Greg Chapin agreed to return to MEDINAH all of their shares of MEDINAH stock (common and preferred.) Furthermore, Greg Chapin agreed to give MEDINAH the shares he owned in AURYN Mining Chile SpA which he obtained through his ownership position in NUOCO.
In summary MEDINAH anticipates the following changes to its capital structure and ownership in AURYN.
- A decrease of $4.3 million in alleged debt leaving the alleged remaining debts totaling $373,000. This is A 92% reduction in debt.
- A return and cancellation of approximately 122 million shares of common stock. This will lead to a 4.1% reduction in the amount of common shares issued.
- A return and cancellation of approximately 1,600,000 shares of preferred stock. This will lead to a 38% reduction in the amount of preferred shares issued.
- An increase in its shares of AURYN Mining Chile SpA of 1,704,000 shares. This increases MEDINAH’s ownership in AURYN by approximately 7%, from 25,000,000 to 26,704,000 shares of AURYN.
MEDINAH intends to cancel the common and preferred shares returned to it, thereby reducing its shares issued and outstanding. As soon as possible, MEDINAH will reduce its authorized shares commensurately. Once these transactions are completed MEDINAH will report accurate, finalized totals to its shareholders.
Please note that the cancellation of the debt and return of the shares was voluntary. This is not a quid pro quo transaction. It does not prevent or influence the company or its shareholders from bringing legal action against any individual should such action be deemed appropriate.
Submitted by the Board of Directors