IMPORTANT POST-PLEASE READ:
Here are the questions that we posed and answers from Management-questions were forwarded yesterday morning and received yesterday afternoon-fast work for Medinah-hey?!. (Instead of making wild assumptions about a number of issues-why not get it from the horse's mouth?) I would treat this as only quasi official answers as this is not an official press release and it is possible that I tampered with the information for my own ends or the questions were not understood properly!=(I didn't change anything-I swear!) Some of the information in the responses was news to me and hope it would help you in making your important investment decisions. I have added some extra comments after management's responses for fun.
Stay Healthy! Yours Truly, Mike Gold
(Note: Some of the formatting got screwed up when it was cut and paste from a word processor.)
QUESTIONS FROM SHAREHOLDERS CONCERNING MEDINAH MINING/MEDINAH GOLD
1) "Mr. Chapin is presently reviewing the properties and corporate structure of Medinah and will be preparing a summary for distribution to Shareholders." Where is the summary? Exactly what is Mr. Chapin role in Medinah? What other changes are contemplated on the Board? Why was Gordon asked to join the Board at this point in time? If we JV, will the Major have Board representation?
A. In print to be mailed with notices of AGM
B. Active Director on Corporate side of affairs
C. To bring Gordon's expertise into Board management and planning on properties.
D. Most likely
2) What is the status of the financials for MDHM and MG? When will MDHM become a reporting company? What are the book values of MDHM and MG? When will MG become a public company and open for trading? What share price will MG open at? (Ballpark quessestimate)
A. Financials completed by Shpak & Co. now being brought to current US GAP standards by Scott working with his CPAs for audit.
B. ASAP.
C. MG-No idea?
COMMENT: SOUNDS THE FINANCIALS ARE HEADED TOWARDS BEINGS FORWARDED TO THE SEC. FINALLY!
3) What is the current status of all legal cases against Dayton Mining? Please provide specifics-ie time frames-(when the cases will be heard-when we expect a verdict)exactly what each case is about-what we stand to gain or lose in each case. Information in the past concerning status of the Dayton?s case has been fragmented/untimely/unreliable to say the least. What steps can be taken to keep shareholders better informed on what is going on with these cases? Is a monthly update from Quijano and Medinah's attorney too much to ask?
Dayton will be summarized at AGM. Discoveries on Dayton Canada commence in November with trial September 2000.
4) What is the current number of NDA's? Why have we not lifted them yet? What does Medinah expect to happen when the NDA's are lifted?
18 ? after current GeoDatos reports are public, except for NDAs which have specific timeframes as long as a year. Bear in mind, each one is different!
COMMENT: SO NOW WE KNOW WHEN THE NDA'S ARE GOING TO BE RELEASED! RUMOR IS THAT THE IP'S ARE BEING WRAPPED UP AND SHOULD BE COMPLETED TODAY OR TOMORROW BEFORE GEODATOS MOVES ON TO LOBO NEXT WEEK.
5) Which brokerage firms are short Medinah? What is the size of the short position? (As of what date? Has there been additional shorting since that date?) Explain details about the forensic audit.
Updated report at AGM.
COMMENT: MY GROUP CONTINUES TO FIGHT WITH ETRADE TO GET OUR CERTS-SO FAR WITHOUT SUCCESS.
6) For those that have not received MG Certs due to the shorts; what legal action does Medinah suggest they take? Class action lawsuit? What legal action has Medinah taken/will take against the shorts? How will the short issue be resolved? Will the shorts be forced to cover or not? Explain Dayton's involvement in Medinah?s short position. Explain the alleged paid SI basher?s relationship's with Dayton. Who are the culprits? Will Medinah cut a deal and sell shares for cash to the shorts? What kind of terms might Medinah cut with the shorts?
Demand letters are going out this week to 44 firms that have not distributed MG shares. Now is definitely the time for every shareholder to agitate aggressively to get their dividend shares. This will definitely help resolve. The shorts will be forced to cover. At this point, Dayton denies they have any involvement in short selling. We have two opportunities to pose these questions under oath:
- Stymies hearing and the discoveries of Dayton's officers.
- Stymie admits being in Dayton employ as a Financial Consultant hired to examine Medinah, and continues to be employed by Dayton ? you judge!
7) "Medinah Mining is intending to conclude a joint venture partnership for the purpose of continuing development of the recent gold-copper discoveries at Alto De Lipangue and Las Dos Marias." Okay-where is the JV? Please give a detailed explanation of the reasons for the delays. In general, what kind of terms might we expect in a JV with a Major or a deal with a Mutual Fund? When will the deal be finalized? Is there any remaining "hurdles" that must be jumped in order for a deal to be cut? How will CDCH be involved in all of this? How much share dilution might be necessary? What have the Majors been saying about our properties? Do they think Lipangue/LDM is a world class deposit? Please give a summary of the current thinking in regards to a mining plan for LDM/Lipangue/Lobo. Are we still talking a vast open pit mine at Lipangue or will we have to go with an underground/other setup due to the depth of the porphyry?
Only comment ? many negotiations are ongoing and all significant developments will be reported. As to the properties, read Steve Doppler's comments.
8) Please explain Medinah?s insider's involvement with Cerro Dorado. What % of Cerro Dorado does Medinah Insider's own?
Medinah Gold owns 4.5% of CDCH; Medinah Mining owns 0.9% of CDCH; Frontier International owns 1.8% of CDCH. I have no idea what, if any, other insiders might own. Mr. Quijano owns, pursuant to his sales agreement, 50% of CDCH.
9) Please explain how the terms of the Ipun Island deal were arrived at between MDHM, CDCH and MG. Is a report available showing sampling results from the Island?
Reports have been published. Price was determined by costs incurred to date and consideration to the future undeveloped potential and costs.
10) Please outline all holdings of Medinah Gold. Explain the value of each holding and present state of development and future plans of each holding if any.
AGM.
11) Discuss the Catan vein. Did AC Howe determine a resource estimate for the Catan? If so, what is it? Are any mining activities occurring at the Catan? How much ore has been stockpiled? Has any of the ore been sold? If not, why not?
Catan has not been worked on since November 1998 as work was concentrated at Lipangue. The stockpiled ore has not been sold at this time.
12) What is happening at the Placers? Is there anyone still interested in them? What were the terms for JV/buyout with the Russian consortium? Why did it fall through? Reportedly, the Russians did sampling-is a report available?
Nothing. The price of gold over the last year has not warranted the expenditure necessary to develop the property and will be reviewed again by Paul Jones.
13) What is going on at the Andicollo? Does MG own Andicollo out right or still need to make payments? If so, how much is still owed? Are the other properties of MG optioned or owned outright? What do we still owe on them? What is going to happen with Dayton? Are they going to be bought out by a Major who will also snatch up our holdings there also?
Nothing. After settlement of the lawsuits, if successful, a future 1.5 million must be paid over time for total ownership. If not successful, nothing is paid.
14) It was rumored that MG's had options to a large parcel of claims adjoining Barricks' Pascua properties-what is the status of these claims?
Yes. Options remain- no decision.
COMMENT: IN CASE YOU DID'NT KNOW-MEDINAH GOLD HAS OPTIONS TO THE BEST STRAGETICALLY PLACED PROPERTIES IN ALL OF CHILE-IE THOSE BORDERING BARRICK'S 20 MILLION OZ PASCUA PROPERTY
15) How many shares of Medinah Mining are owned by Management/Insiders? (How many Common/Restricted/Preferred?) Is it true that the Preferred can't be converted to common unless the share price reaches a dollar? If all the Preferred are all converted to common shares-this would cause the total number of outstanding shares to exceed 100 million-exceeding the authorized cap. Please explain.
See AGM
16) Are their any additional claim blocks available near LDM/Lipangue? If not-who owns them?
No.
COMMENT: RUMOR IS ONCE WE STARTED DRILLING-ALL REMAINING PROPERTIES IN THE AREA WERE GRABBED BY SOMEBODY-TOO BAD.
17) How many shares does Quijano own in Medinah?
That is his business. I cannot disclose any third parties holding to anyone.
COMMENT: I BET IT IS QUITE A LOT. I WISH WE COULD GET QUIJANO TO COME ON THE THREAD!
18) Does MG still have options to Mina Claudia? What happened to that property? Where is this property?
No. Dropped in 1997/98 because of a clouded title. If titled is cleared up, we can re-establish ownership.
19) Please explain what we can expect in the upcoming drill program. How big? How long? How many drill rigs will be involved? If only one-why only one? Why can't Medinah employ multiple rigs for this drilling phase since the number of drill targets appears to be quite large? IR has told us that the number of drill rigs that can be employed is limited as Gordon needs to review all of the drill core. Why is this? Is Gordon the only person qualified to look at drill core? Tentative drill plans given out by AC Howe and Gordon House seem to be geared towards proving up more of the breccia pipe(s) for the bean counters instead of going after the real bread winner-the porphyry. Geologists tend to be conservative and overly cautious. They are good at geology but don't know necessarily what?s best for shareholders. We shareholders want the biggest bang for the buck-take a chance-Columbus did! Why not employ at least one wild cat drill rig to look for the elusive porphyry, and another rig for the bean counters plus a third rig at LDM?
See ACA Howe report and Gordon House's reports. Contracts are now being negotiated and there could possibly be more than one rig.
Good advice and I concur.
COMMENT: TURN LIPANGUE INTO SWISS CHEESE!
20) When will we see the IP results? What did the IP show? How much did the IP cost and who paid for it? Was any geophysical work carried out just after the last drill program? It was rumored that downhole mag surveys were conducted. Is this true? If so, what were the results and why weren't they released?
GeoDatos is completing all geophysical work as recommended by the professional and after interpretation, the results will be publicized.
21) How long does Medinah management feel that Medinah Mining will be around? What share price does Management feel that Medinah will be ultimately bought out for?
Until the Lipangue is entirely mined out, probably 30+ years.
COMMENT: NOTHING LIKE A BIT OF SUBTLE HUMOR TO FINISH OF THE COMMENTS......:) |
