Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Medinah Mining Inc. (MDHM) -- Ignore unavailable to you. Want to Upgrade?

To: J. Nelson who wrote (4093)	7/13/1998 9:08:00 AM
From: jack	Read Replies (1) \| Respond to of 25548

Monday July 13, 8:33 am Eastern Time Company Press Release Dayton Confirms it Holds Mineral Title and Surface Rights to All Land Which Cover its Published Reserves, Resources and Mine Plan at Andacollo VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--July 13, 1998-- Dayton Mining (TSE:DAY. - news; AMEX:DAY - news) Dayton Mining Corporation [AMEX:DAY - news] would like to address certain issues regarding title to property in and around its Andacollo Mine in Chile. These issues were raised in a press release dated June 17, 1998 by Medinah Energy Inc [OTC BB:MDIN - news]. Dayton confirms that it holds mineral title and surface rights to all land which cover its published reserves, resources and mine plan. For more detailed information see below. Dayton's Efforts to Annul Mr. Tornero's Overstaked Mining Claims in the Churrumata area Dayton holds title to mining claims Churrumata, Andacollo and Rosario which were originally staked in the early 1900's and cover a part of the Churrumata area. Churrumata is one of eight deposits on the Andacollo property. Dayton's three claims were overstaked by Julio Alberto Tornero Olivos (''Tornero'') (the ''Tornero Claims''). In 1995 the Court of Appeals of La Serena ruled that the Tornero Claims should be annulled and removed from the register. Prior to the 1995 court decision, Tornero transferred the claims to his mother. As a result, the Mine Registrar was unable to carry out the Court order to remove the claims from the register. Dayton has therefore had to re-file its lawsuit against Tornero's mother. Dayton obtained an injunction against any further transfer of the title or sale of the Tornero Claims by Tornero's mother pending the outcome of the new lawsuit. Based upon the original ruling of the Court of Appeals of La Serena, Dayton believes it will be successful in its re-filed lawsuit against Tornero's mother. Medinah Energy has stated that Dayton has lost two cases before the courts in this matter. In fact, Dayton was successful in all three cases cited by Medinah Energy involving the three claims (File No.'s 1,813; 1,814; and 1,815). Dayton has merely been frustrated in having the order of the court enforced for the reasons cited above. Dayton confirms that it holds title and surface rights to all land which cover its published reserves, resources and mine plan. Dayton holds the mineral rights in an area of Churrumata where Tornero's mother and wife owned certain surface rights. In 1995 Minera Dayton applied to the Chilean courts for a mining easement to enable the development of the property covered by these surface rights. This is a common procedure in Chile and is frequently granted by the courts to enable holders of mineral rights to undertake their exploration or exploitation activities. In 1996 the First Instance Court of Andacollo awarded this mining easement to Minera Dayton. Minera Dayton was required to pay 50 million pesos (US$125,000) to Tornero's mother for this mining easement, which amount has been paid. With Chilean police present to carry out the ruling of the court, Minera Dayton took material possession of the property on January 23, 1998 and removed the vacant building on site. A criminal complaint was filed against Minera Dayton by Tornero's mother in the Court of Andacollo for the removal of the building. The Court investigated the matter and all facts pertaining to the issue and concluded that the complaint had no merit and denied the request to bring criminal charges against Minera Dayton. Tornero's mother has appealed this decision. Medinah Energy announced that the ''Chilean courts have stated that Dayton exceeded (its) access right granted them when they demolished all of the buildings, plant and equipment.'' In fact the courts have never made any such pronouncement and, as described above, the Court of Andacollo has refused Tornero's mother's request that criminal charges be brought against Minera Dayton. Medinah Energy stated in its press release that the tearing down of the building has ''prompted the filing of ... civil compensation suits by Medinah Energy Inc. against Dayton.'' No civil compensation suit has been filed to date against Dayton by Medinah Energy Inc. None of the litigation being brought against Dayton with respect to this matter affects Dayton's mineral rights or its court granted easement rights to this property. Dayton Mining Corporation holds a 100 percent interest in the Andacollo Gold Mine located in central Chile. The company trades on both the American Stock Exchange (AMEX) and Toronto Stock Exchange (TSE) under the trading symbol DAY. Contact: Dayton Mining Corporation Diane Thomas, 604/662-8383