LAS VEGAS--(BUSINESS WIRE)--Medinah Minerals Inc. (OTC PINK: MDMN) reports that its 100% owned Chilean subsidiary, Medinah Mining Chile (MMC), has been presented with an option agreement proposing a purchase of Compania NUOCO Mining Chile S.C.M. properties by Medinah Mining Chile, as recommended by the Chilean firm C & R Consulting. The NUOCO properties comprise the Las Dos Marias, Columbo and Mambo groups covering 2000+ hectares. This proposal was presented by AURYN Mining Chile, SpA to MMC in order to consolidate and streamline their entire property package that includes the Altos de Lipangue properties, currently under option to AURYN from Medinah Mining Chile, into one group.
Medinah Mining Chile, currently a 15% shareholder of NUOCO, will agree to purchase the remaining 85% holdings interest in NUOCO as part of a strategic consolidation proposal. This purchase is subject to a performance agreement by AURYN Mining Chile SpA with NUOCO, which agreement calls for the completion of work programs including geophysical, geochemistry and drilling programs on the NUOCO group of claims. The completion of this work will entitle AURYN to earn a 60% interest in the NUOCO properties. In the next phase, AURYN will earn an additional 25% by investing U.S. 2.5 million dollars in a feasibility study.
AURYN Mining Chile SpA will bear all costs and immediately initiate a minimum drill program of 5,000 meters. All materials and discoveries remain the property of NUOCO if AURYN chooses to vacate the project. All rights and conditions given under this agreement by NUOCO shareholders would be rescinded and NUOCO would retain their original rights and holdings of the assets.
As in the MMC/AURYN agreement covering the Altos de Lipangue property, this contract gives AURYN the exclusive rights to the NUOCO properties until August 1, 2017. AURYN may decide to complete the agreements sooner.
By completing this transaction, MDMN, through its subsidiary MMC, will effectively control 100% of the NUOCO holdings and will then be able to consolidate its Joint Venture Agreement with AURYN Mining Chile, SpA in conjunction with the Altos de Lipangue agreement.
Please refer to the Medinah Minerals, Inc. website at www.medinah-minerals.com for more company information.
AURYN Mining Chile, SpA
Medinah Mining Chile
Medinah Minerals, Inc.