MDMN Q & A Released
MEDINAH MINERALS Question & Answers
March 7, 2012
Question & Answer postings are compiled from time to time, as an information source as to company actions and/or activities. Q&A posts will continue in the post-Joint Venture Agreement phase concerning Company activities, to provide ongoing information for the benefit of Medinah Minerals shareholders.
Q: There appears to be some confusion regarding the ownership of the Ciclon 1 & 2. Please clarify what we have as Medinah shareholders?
A: Medinah Minerals, Inc. negotiated a 10% ownership interest in the Ciclon 1 property, which consists of 22 claims, by purchasing 10% of a company known as "Sociedad Legal Minera Ciclon 1 Del Sector Sur Quebrada Salitrosa", that is the 100% percent owner of the Ciclon 1 claims.
Medinah Minerals, Inc. negotiated a 10% ownership interest in the Ciclon 2 property, which consists of 30 claims, by purchasing 10% of a company known as "Sociedad Legal Minera Ciclon 2 Del Sector Sur Quebrada Salitrosa", that is the 100% owner of the Ciclon 2 claims.
The above share investments have now been legally recorded by the Official Notario in Chañaral Chile and were recently paid for by the issuance of 20,000,000 million Common MDMN shares.
Q: Is the LDM producing?
A: The Las Dos Marias camp for housing the work crews, including kitchen, washrooms, etc., have been moved into a cleared area to set up semi-permanent accommodations.
The Mining Engineer and Mining Geologist have detailed the final development plan for both the shaft and adit and actual on-site work is underway.
Q: What is the status of the Class C Preferred shares and why are these issued at $0.001 cents each? I don’t understand why they are listed at one dollar?
A: The Class “C” Preferred Redeemable Convertible shares, for the purpose of filing with the State of Nevada, carry a normative/nominal par value of $0.001 cents. The Company Directors then set the final issuance price by Formal Resolution, and have determined this final price to be at $1.00 per share. The determined issuance will be provided each quarter on the Unaudited Interim Financial Statement.
Q: When will the Joint Venture on the Altos claims be completed with funds?
A: All the parties, including the Principals of the Purchase Group and the Altos de Lipangue property holders have signed the Agreement to sell 85% interest in the Altos de Lipangue claims. This Is not a Joint Venture and, in fact, is a mineral claims sale with Medinah Minerals (Chile) S.A. retaining a 15% “free carried” ownership interest in the 1,508 claims.
Several Auxiliary Agreements detailing final preparatory matters; including legal parameters, drilling and exploration operations, mandated duties of the Purchasing Group, and final delineated responsibilities of the parties, are now being presented for signature. This will release the first tranche of the $180,000,000.00 funding and discharge the obligations the parties have under the Non-Disclosure and Non-Circumvention Agreements.
Juan José Quijano Fernández
President/CEO
