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

To: J. Nelson who wrote (4854)	8/4/1998 3:38:00 PM
From: Geoff Coates-Wynn	Read Replies (1) \| Respond to of 25548

Here's my read, J., The kicker is that the shares given to FIRE get distributed right back to MDIN and NPEC, as they are shareholders of FIRE(the big question is how many of the shares come back to NPEC and MDIN as opposed to other shareholders). NPEC's original 14.4 do not appear to me to have been cancelled at all. Of course "further 1,500,000 Class A preferred shares to NP Energy Corp as settlement for any and all interests and participation NP might retain pursuant to the Frontier/NP/Medinah acquisition agreements" could, I suppose, be read to indicate the 14.4 get cancelled out, but I read that more as saying the various 20% interests get cancelled out. So, we end up with 1) MDIN as 100% owner of properties, since NPEC loses their interest. This is a good thing for any future JV's or sales, and makes our math so much easier. 2)MDIN with 28.8 million common(notice that's a multiple of 14.4...hmmmmmmm), and 8.965 million preferred, 4:1 convertible at one-third each over the next three years, and not starting until next July. 3) NPEC with (I think) 14.4 common of MDIN plus 1.5 mill preferred, plus whatever their relative holdings of FIRE get them, but no interest in the properties. What properties this leaves NPEC with I'll have to check, but Pocone and Metroplus, at least, aren't too shabby. 4) In addition, at least some of those 7.965 million to FIRE go back to MDIN and effectively get immediately cancelled out. I don't know, but it's my bet that MDIN and NPEC own quite a large percentage of FIRE, and the preferred stock, therefore, stays "in the family". Overall, I like it. Would just like clarification as to how much of FIRE is owned by NPEC and MDIN. Thoughts?? Geoff