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

To: Mr.D who wrote (14913)	6/4/1999 10:34:00 AM
From: David Colvin	Respond to of 25548

Whatever

To: Mr.D who wrote (14913)	6/4/1999 10:43:00 AM
From: Richard S. Gates	Read Replies (2) \| Respond to of 25548

Mr.D: The point is that when the accounting has taken place, the Medinah Gold listed in the IRA account as restricted, no value, will be removed when the TA sends the actual certificates to the owner. At some point in the future the shares will have a value when the company goes public, and at that point there would be a substantial profit on the stock($.00 to $.50 for example). Most likely this would happen long after 60 or 90 days has passed making the owner subject to a 10% penalty, if he is under 59.5 years old, and income tax as well. I guess that when the owner gets the shares mailed to him then he should immediately send them to his broker, and hopefully that would be within the allowed time limit. Does this make sense? The Gipper

To: Mr.D who wrote (14913)	6/4/1999 10:45:00 AM
From: Ken Sammut	Read Replies (2) \| Respond to of 25548

MrD, You may be wrong. Medinah Gold is a private company. A broker will not hold the shares. Once the TA gets things figured out, I am sure our brokers will send us our certificates. All IRA/SEP securities must be held by a trustee (broker/bank etc.) and only certain types of securities are allowed in a retirement account. Privately held companies (to my knowledge are not). Depending on the timing of how all this shakes out, there may be a very good chance that shareholders who received the dividend from shares held in their retirement account will have no place to put these shares. Not their fault but they may have no recourse but to take the penalty. The upside is that currently the shares have no value. Shareholders who have this problem will need to eventually contact Medinah Gold management and ask them for a letter of valuation. If the valuation is low, the penalty and tax will be nominal. Do not rush out and do this until we learn what kind of time frame we are looking at for a Medinah Gold IPO. All of this IMHO. Ken