April 8, 1998 09:21 AM
LAKE ELSINORE, Calif.--(BUSINESS WIRE)--April 8, 1998--
Medinah Energy Inc. Commences Legal Action Against Dayton Mining
Corporation for Destruction of Mill and Property in Chile
Medinah Energy Inc. entered into a contract to purchase for USD $10,000,000, 234 gold properties in the Andacollo gold mining district of Chile. The properties are around and adjacent to the well known Churumata/Dayton properties and next to Dayton's heap leach mine. Two of the properties contain in excess of 6 million tons of drill indicated ore grading overall 1.5 to 2 grams of gold per ton. Development of additional reserves remains open at depth and in all directions. The purchase contract covers 234 mineral claims which includes such properties as the Mercedes, Toro, La Colorada, Mac Pato, Violetta, Beagle, Vulcan, Jesus, etc.. Company engineer Mr. Paul Jones has completed a sampling program on the Toro claims to verify reports. Assay results and a pre production work recommendation are forthcoming.
Sierra la Plata S.A., wholly owed subsidiary of Medinah, held the original option agreements on these properties. Medinah is also negotiating a buyout of the interest previously held by NP Energy Corporation in these claims.
Company attorneys in Chile and the United States have been authorized to commence legal action against Dayton Mining Corporation for actions taken by Dayton in January of 1998. Dayton personnel entered the Churumata property, which is legally under a lease agreement to Sierra la Plata S.A., wholly owned subsidiary of Medinah Energy Inc., and using a bulldozer, destroyed a mill facility under construction, a three bedroom house used as management quarters, crews quarters, a test laboratory and an office facility. Personnel inside the house at the time, were forcibly removed. Medinah's attorneys in Chile have been working on this case since January and have now all of the information necessary to proceed. Note: This news release may contain certain "forward looking statements" within the meaning of the United States Securities Exchange Act of 1934 as amended. All statements other than statements of historical fact, included in this release , including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Medinah Energy Inc. are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future could differ materially from those anticipate in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the Heading "risk factors" and elsewhere in documents filed from time to time with the United States Securities and Exchange Commission and other regulatory authorities. |
