At the informational meeting, we spoke about a new Medinah, one that was transparent and communicative. Some of you may be wondering, “What happened?” “Why hasn’t anything changed?” Pending litigation has restricted us from making certain communications. However, I assure you that things have changed, and ask you to give us a little more time to demonstrate it.
To that end I have set up the corporate website with the following pages:
The Communications menu contains links to the News, Notifications, and From the CEO pages. Whenever a post is made to any of these pages, subscribers to our shareholder notification list will receive an email notification of the change.
The News page will contain copies of news releases we submit to the public via the OTC Markets news page. This includes announcements of material changes and other matters of significance that require public disclosure. It also includes information that we are publicizing to reach a broader audience than is reached through our other communication channels.
The Notifications page will contain updates that are more relevant to our existing shareholders and don’t involve material changes. Examples of such items may include posts alerting our shareholders to announcements that AURYN has made or updates posted to our Financial or Legal pages.
From the CEO
The From the CEO page will contain posts from me regarding things that are not relevant to the public nor are they considered a notification regarding corporate information. Think of this as a Medinah blog of sorts. ::: most of you will find this quite boring :::
It will also be a place where you can interact with me and help guide the conversation. You can do so by emailing me at email@example.com. Although I will not be able to reply to every email, I will read them.
My intention is to make brief posts (unlike this one) once or twice a month depending on how things flow. It may end up being less frequently as time goes on due to there being less to communicate about. We will see how it goes.
Medinah has been publishing its 15c211 and quarterly financials on the OTC Markets page for several years. Unfortunately, as we have disclosed, that information is inaccurate and cannot be relied upon. It will take us time to acquire the necessary records to reconstruct the corporate books and restate our filings. We are working on this. Currently we do not have access to all the required information and I cannot give a timeline for how long it will take.
In the meantime, the proper processes, corporate governance, service providers, and systems are being put in place to ensure that going forward we can report on our financial condition in an accurate and timely manner with a level of transparency and truthfulness that is rarely seen on the pink sheets. The Financials page will contain current filings with disclaimers regarding historic information as soon as practical. Our goal is to have an unaudited financial statement posted for 2016 by the end of the first quarter of 2017.
Legal (Filings and Contracts)
Medinah is currently involved in four legal proceedings. Shareholders should not have to join PACER, call the courts, or use any other means to obtain public legal filings. Whenever a publicly available legal filing is made regarding Medinah we will make it accessible to our shareholders on this page. Links to current legal proceedings that are in my possession will be posted on this page by the end of the year.
In the past Medinah alluded to contracts or non-disclosure agreements with vendors or suitors but rarely disclose them publicly. Medinah was not required to do so. However, Medinah will make every effort to disclose such unless there is a significant strategic reason to keep them private. If there is such a reason, the contracts will be kept private until the time when the reason is no longer valid. Then they will be made public on the Legal page.
Medinah’s main asset of value is its 26.8 million shares of AURYN Mining Chile SpA. AURYN is a private mining company that is not held to the same disclosure standards that Medinah is held to. Nevertheless, AURYN is aware that its second largest shareholder is a public company, and they indicated at their shareholder meeting that they will make monthly public disclosures regarding their mining operations. Medinah includes a link on its main menu to the AURYN web page for your convenience. AURYN is responsible for its own communications and Medinah can only post what information AURYN discloses to the public. Medinah shareholders will be alerted to any newsworthy information posted by AURYN on our Notifications page. AURYN has created its own public notification list for those who want to subscribe and receive timely notifications directly from AURYN. You can also subscribe to the list directly on their website.
As a Medinah shareholder, officer, and director, my desire is for AURYN’s long-term success. This means I want AURYN’s management focused on building a successful mining operation that is profitable for the long-term. AURYN must conduct its business by doing what is best for AURYN and its shareholders. We Medinah shareholders will be will be the ultimate beneficiaries of that.
Along with being Medinah’s President & CEO, I am also AURYN’s Communications Director. Being such, I have access to more information about the status of AURYN’s operations than the public does. Professional responsibility demands that I separate the two and manage the conflict appropriately by not disclosing information to Medinah shareholders without the permission of AURYN’s management.
Although AURYN may hold back the release of public information from time to time for its own strategic reasons, now is not one of those times. Presently AURYN has not shipped its ore for processing. When the first shipment occurs, AURYN management will evaluate its communication to Medinah.
I have a healthy and strong relationship with AURYN’s CEO, Maurizio Cordova. This is to Medinah’s benefit. He has no intention of harming Medinah or disenfranchising us as shareholders of AURYN. If there is information that can be disclosed that will benefit Medinah, I will be lobbying for its release.
Where is Medinah
Medinah is at a crossroads. We have suffered greatly through apparent fraud. Yet we now have what amounts to a 26.8% interest in the entire Altos de Lipangue (ADL) mining district through our ownership in AURYN. The ADL is being actively mined and explored and its claims are significantly larger than the subset of claims Medinah had only a 50% interest in several years ago.
This essentially leaves Medinah, a company with a very poor reputation, holding a minority interest in a relatively unknown private company that has recently initiated mining activities on a very large and promising mining district.
Although we have no control over what is in the ground on the ADL or how AURYN goes about mining, we can turn our reputation around.
In order to help Medinah recover I have established the following goals for myself and the company.
- Provide organized, detailed, honest, trustworthy, and communicative leadership.
- Finish setting up the internal processes necessary for proper corporate governance, accounting, stock transfers, and conducting Medinah’s financial affairs.
- Work with the attorneys and a forensic accountant to get access to all accounts and records that pertain to Medinah’s affairs and recover whatever cash or stock can be recovered.
- Manage any cash flow efficiently and ensure that it is returned to the shareholders or used to build or retain equity rather than destroy it
- Produce reliable financials that can be reported via the OTC Markets so that Medinah re-qualifies for the Alternative Reporting Standard.
- Conclude all outstanding litigation as quickly as possible for the greatest benefit to Medinah’s shareholders.
- Remove any remaining contingent liabilities.
- Reorganize the operations and capital structure so that Medinah operates efficiently and with minimal cost to most effectively return any capital distribution from AURYN to the shareholders.
- File audited financial statements and evaluate whether we should up-list to a higher exchange on the OTCBB.
- Prepare the company for an exit event or for the long-term distribution of dividends should the market not fairly value our stake in AURYN.
Up until now I have been a volunteer, both as Communications Director and President & CEO. Due to the time commitment involved, I recently asked the board of directors for compensation for my work going forward as I serve the board of directors and you, the shareholders. They met apart from me and last week agreed to compensate me on a part-time basis.
Beginning 2017 I will be paid at a rate of $100 per hour with a cap of 30 hours per month billable, regardless of how much time I commit. If there is any change in this, you will be notified.
As I write of long-term goals and plans regarding exit events or dividends I want to remind our shareholders that Medinah is still a risky investment. We are subject to risk with all the outstanding litigation and contingent liabilities. In addition, we are subject to the risks that all mining companies face.
The Altos de Lipangue is a vast area with some incredibly promising targets and a mine that is just starting to produce. But mining is not an easy business. Equipment breaks down and introduces delays. Geological structures that first appear promising turn out to be uneconomical based on various factors. Government regulations and permitting requirements change. We are subject to all this risk and more through our ownership in AURYN.
In the past I have not appreciated or respected these risks. I have learned to do so. If you have not considered these risks, please do so.
As I close my first CEO update, on behalf of the Medinah team, I wish you all a Happy Holiday season. Whether celebrating Christmas, Hanukkah, Kwanzaa, or Festivus — this is the time of year to rejoice and celebrate, to slow down, give of ourselves to others, spend time with those we love, perhaps think of those we miss.
President & CEO
Medinah Minerals, Inc.