LAS VEGAS--(BUSINESS WIRE)--On Thursday, August 7, 2014, Medinah Minerals, Inc. (Pink Sheets: MDMN) announced a Stock Issuance Share Cap Agreement with representatives of AURYN Mining Chile, SpA with regard to the Joint Venture Option Agreement concerning the Altos de Lipangue group of claims near Santiago, Chile.
The number of Authorized Common Shares of the Medinah Minerals, Inc., Company is currently 3 billion, as approved by the shareholder body. The Board of Directors has agreed to restrict all remaining share issuances to a maximum total of 1.5 billion, fully diluted, of the 3 billion authorized, that can be issued and outstanding during the entire 36-month Joint Venture Option Agreement period with AURYN Mining Chile SpA. Presently, Medinah Minerals, Inc., has 957 million shares issued and outstanding. After conversion of all current/outstanding Mining Claims Consolidation Purchases, and Preferred Share Redemptions for Debt Resolution of the Company obligations, the total shares issuance will be approximately 1.35 billion. As a result of this Share Cap Agreement, during the 3-year Option Agreement period, Medinah Minerals, Inc. can, only if necessary, issue a total of 165 million shares from the Treasury.
The completed Joint Venture Option Agreement does not require the issuance of any MDMN Treasury shares to AURYN Mining Chile, SpA, as a contractual condition of the final Joint Venture Option Agreement. AURYN Mining Chile SpA board members have provided Medinah Minerals, Inc., with their written intent to purchase MDMN open market shares.
Pursuant to the contract, Medinah Minerals, Inc.’s. subsidiary, Medinah Mining Chile, will retain a 15% equity interest in the Altos de Lipangue Joint Venture project.
Medinah Minerals, Inc.’s, 100% owned subsidiary, Medinah Mining Chile, maintains, in good standing, all of its other ownership percentages in various mining properties throughout Chile. These include percentage holdings in the Compañia Minera LDM Chile, Compañia Minera NUOCO, Compañia Minera Jota, Compañia Minera Polo, and Compañia Minera Madre de Dios.
Dennis B. Tenney
CEO – Medinah Minerals, Inc.