Here's a summary of some of my notes from the AGM. I have lots more information but didn?t record it in my notes. I will go over that information later.
Arrived in Reno Sunday night and immediately went to an informal shareholder's meeting on the 27th floor of the Hilton. Management was in attendance but were keeping rather quiet and mostly in listening mode. There was some finger pointing and a few angry words but nothing too exciting. Didn't learn much from the discussions that I didnt already know(or covered in my notes during the formal shareholder's meeting)
-nevertheless it was very interesting meeting the cast of characters that are involved in Medinah!
Impression of Directors and other players:
Les Price: Businesslike-very capable and professional. Certainly, much of the present success of Medinah can be attributed to him. (It is unfortunate that his past dealings overshadow his accomplishments with Medinah but it is something we just have to live with!)
Larry Regis: Professional-a good speaker,leadership skills, a stickler for parliamentary rules and clearly an asset for Medinah.
Greg Chapin: Top notch. Nothing else needs to be said.
Paul Jones: Top notch. Very friendly, funny, and very experienced in his field.(some 40 years-during which he has looked at some 1000 properties-of course you can guess on what property he thinks is the best he has ever seen!)
Steve Doppler: Top notch. Steve and his company aren't the sleazy PR firm the bashers would have you believe. Quite the contrary.
Gary Goodin: Top notch. Probably the nicest attorney I've met! And there is no doubt he is a better blackjack player than me!
Russell Godwin: He is just as pleasant to meet in person as he is to talk with on the phone. Obvious quite capable and knowledgeable and not afraid to share his opinions! Another great asset for Medinah!
Gordon House: He wasn't there but saw his picture-he has a beard-was wearing a hat and has nice size beer belly! No seriously-everyone that I have spoken with had nothing but nice things to say about him.
Juan Quijano: Saw his picture-he does not look evil! Paul Jones, who knows Quijano well-spoke very highly of him. He is a very down to earth millionaire and kind of guy who would go out of his way to make you well comfortable.
Michael Morrison: Top notch. Again-nothing else needs to be said.
Misc. notes/thoughts:
1) Mike Hoppley is acting as a consultant for Medinah. Since Gordon House can nt longer be considered impartial-Mike will be taking over the role?
2) Steve Doppler flew from his sister's wedding to make the meeting-he has been to Lipangue twice, LDM once(August 18 & 19 and on October 9) Saw some interesting quartz crystal samples taken from the quartz float at Lipangue. Steve says the hydrothermal breccia at Lipangue is a textbook example.
3) Steve noted standing water in the trenches at Lipangue-water should not be a problem this year for drilling.
4) Geodatos is currently doing IP at Lobo-slide show placed the new came right next to the Lampa mine.
5) Steve estimate shear zone at LDM 100 to 200 meter longer than what AC Howe said. Primary target there is the shear hoisted gold-secondary target bedded mantos.
6) Steve says location is great-all the prior work that was done is first notch. Says Lipangue/LDM probably world class. Described world class as a deposit with a million ozs of gold or billion pounds of copper-says only 400 examples in the world that fit this criteria.(Most of these are only 2 to 3 million ozs.)
7) Commented on the excellent quality of Gordon?s work-Gordon is really getting the most out of shareholders money.
8) Steve says Gordon has backed off on multiple pipe theory-early IP results show no pipes at Lobo-instead shear zones etc.
9) Steve discussed the ?cat and mouse? games being played by the Majors with Medinah.
10) To avoid problems-Medinah has paid an access fee to a local former for road access. Steve thinks Medinah is doing a good job maintain good relations with the locals.
11) Diagram of were the 2 deep drill holes will be.(IP stations 1000 meters, 11000 meters-Not sure of W to E coordinates. At the location the holes will be drilled-if IP correct-should hit a 650 meter intersection of minerlization. Holes drilled further South would hit even greater intersection as base of pipe/porphyry drops out of IP range.
12) Steve says never seen anything like it.(IP survey-he has the summary report in hand.) Breccia pipes rarely dip much from vertical-this pipe seems to dip almost to horizontal. It also gets much wider with depth. Since pipes as a rule either maintain dimensions or get smaller with depth-IP is probably show the porphyry-this would explain the wider dimensions. Also IP shows anomalies widen.(W to E dimension) with depth. Porphyry perhaps exposed on Southern Cliff of Lipangue? Too steep to check-would need climbing equipment.
13) Richard Cahoon-President of CDCH introduced.
14) Chapin Report. 4.9 million shares present(17 shareholders) plus 38 shareholders(61 million shares proxy.) 66 million total. Menzie?s group-8.4 million shares, Les Price-4 million, Larry Regis?s group 47 million.
15) Les Price. SHPAK & Company have completed financials. Scott Jensen CPA. If not problems-ready to file next week. Big backlog in processing filings. SEC may grant Grace Period-ie perhaps not end up on pink sheets before financials all processed through the system.
16) Motion made to add Greg Lillar to board. Supported by Menzie's group. Board of Directors decide to allow only 4 board members at this time. May change latter and allow Greg. Board can appoint who they feel like. Larry had controlling votes so he elected himself, Greg, Gordon and Paul Jones.
17) Short position varies between 10 to 30 million-probably closer to 30 million. Brokerages giving multiple excuses why they have not delivered certs have receiving warning letter.(They are getting several responses a day from the 44.) Biggest excuse-?shareholders have not asked for certs?!
18) Michael Morrison says don't complain to SEC if not cert. Best bet-complain to NASD-they will definitely follow. It will be the DTC that ultimately catches the shorts. He says 100% guaranteed.
19) Michael says it does not matter what the date says on your Medinah Gold certs. The 1 year waiting period starts June 1 of 1999. Of course-what if you never get the actual cert?
20) Thursday/Friday-this week should have English version of IP report-then select group gets it-Majors and investment groups. 18 NDA's with just Majors. Of the 18, 7 to 8 of them very interested/
21) Two months ago-starting meeting with Big Fund. 30 meetings at least. Fund takes mining companies from inception to full blown mining operations. Waiting for Geodatos report to finalize deal. Les was on the phone with them prior to the meeting. Amount financed-OPEN ENDED. Fund will be buying stock at the market and from private shareholders.(RUMOR-no diluation for financing-will be payed for by a % of future production.)
22) NPEC and Frontier have not yet converted preferred to common. $1 strike price is simply the price the original numbers were based on.
23) Rollback? No.
24) Vote to increase outstanding shares from 100 to 200? Needed to be able to fully convert preferred? If that is the case-why not 150? Okay-150. Yes. Why not wait to do this-1/3 of preferred can be converted each year-need to do this prior to NASDAQ merger.
25) Medinah has spoken with 3 companies about doing this reverse merger. Narrowed down to one. Tired old company with 18 to 20 million in sales each year.($5 share price.?)(Not a mining company.) Owners want to cash in. Stock would be shell when acquired by Medinah. 3 of the 4 biggest shareholders in agreement(27% of total) to merger with Medinah. Merged company with be Medinah Mining Inc. Has to be done by end of November or it?s a no go. Letter going out to shareholders of this Nasdaq company this week requesting approval.
26) Ian Dow asked when is Medinah going to pay his group for the IP survey? Soon.
27) Dayton's suits. Dayton USA-dropped-no assets to get. Canada case set for August 14, 2000. Nov 18, 1999 Discovery starts. 4 main Chilean suits may be up before Supreme Court early 2000. Very slow court system. Expect more delays. Hulio won $150,000 from Dayton for right away across his property. He wanted $900,000. Dayton had maintained that they owned the property-opps!
28) Chilean cases cover 4 separate claim groups or about 300 hectares-each case separate claim-Dayton has mined to the borders of each claim group?
29) Medinah Gold-22 shareholders present-850,000 shares, 89 people by proxy-5.7 million shares-just barely 50% .
30) Paul Jones gave talk-he has seen 1000 properties in dozen countries-Lipangue is best.
31) Placers-600,000 cubic meters mined before-probably worth $6/cubic meter-production cost around $3/cubic meter at today?s prices. Problems in past placer production-thieves!
32) Suction dredge was too small-however-lots of gold in paystreak adjoining bedrock-visible gold. Rivers are not used for drinking water, no fish.(No EPA concerns.)
33) Pungee placer ready to go in MG management wants to spend funds. Caron placer-big boulders. Start small-show that the placer operation is viable-then expand-that the plan. Were just about ready to go when management decided to drop project last year in favor of spending money on Lipangue.
34) Ipun Island. Placer gold on all 4 beaches and rivers. Whole island owned. Source of gold is not known. Interior of island not explored-very thick vegetation.. Placer operation would need only a screen and cyanide solution. When the weather warms a little more and the storms lessen-they will return for more work.
35) MG Directors/ get 200,000 share options at 10 cents a share.-directors authorized to issue upto 2 million shares for these purpose. Some others eligible if approved by directors.
36) Should MG go IPO or merge with existing OTC mining company? What is the best method? If merger-need to take care of short position first before merger or shorts would be able to cover.
37) What OTC company? Can't say but it is not NPEC or CDCH. (My comment-who it is-obvious.) |
