Shareholder Update – March 18, 2010
Chile Report
As our Medinah shareholders know, the last few years have been a time of extreme financial
stress for families and businesses. Each of us has had to face an unbelievable period of
uncertainty and trepidation for the future of our financial well being. Medinah Minerals, Inc., as a
Company trying to do business in this most difficult time, with minimal resources, has endured
during waves of business failures and closures by even the giants of industries. Every obstacle
thrown in Medinah’s path has been met with resolve, but make no mistake, “it has been beyond
difficult.” We have continued to entertain every prospect and possibility with fervor, but have
been unable to finalize a deal through the latest month of February 2010.
With our bags packed to leave for Chile in early March, came the word of Chile suffering one of
the worst ever recorded Earthquakes and subsequent Tsunamis on February 27. We each
wondered what had happened to the Chilean population, and specifically to Señor Quijano and
his family. Word came days later, when minimal electrical and communicative resources were
somewhat restored, that Señor Quijano and family were physically safe, but devastated by the
death and destruction throughout many areas of Chile. We were also informed that each of
Medinah’s holdings was minimally impacted. As we were previously scheduled, and at the
request of our Company President/CEO, Juan José Quijano Fernández, members of the
Medinah team decided to still travel to Chile, through the objections of our families.
Subsequently, American Airlines and Hotel Kennedy canceled each of our flights and hotel
arrangements several times delaying our departure 1 week due to the Chilean airport terminal
suffering extensive damage and the rearrangement of all of our previously scheduled meetings.
Our decision to still go to Chile was to represent the shareholder body and thoroughly analyze
and support Señor Quijano’s endeavor to bring to fruition a “deal” for the benefit of Medinah’s
shareholders. Over the course of extremely difficult circumstances, untold delays, altered
schedules, cancelled meetings, cancelled flights, subsequent earthquakes, and hundreds of
significant aftershocks, etc. we were able to adapt and adjust times and days and participated in
several face-to-face meetings and interactive communications with potential Joint Venture
Agreement partners. Verifiable and credible potential Joint Venture Agreement partners were
met, documents were reviewed, and significant progress was made in advancing the goal of
completing a meaningful financing agreement on the Alto de Lipangue property. Unfortunately,
two of the Major parties were unable to avoid flight cancellations and get into Chile for our
scheduled meetings. Each of these parties was contacted via teleconference as to their exact
intentions regarding Medinah, and they will be in Chile next week to solidify their negotiating
position(s).
Throughout our stay, we continued to interface with each of the Major groups that stated they
would have an offer sheet for our review while we were in country. Due to the well-documented
Chilean “aftershocks”, “black-outs”, “communicative disruptions”, “road and bridge closures” and
the inauguration of Chilean President Sebastián Piñera, etc., etc., etc., the disruptions were
countless and “Murphy” reigned supreme. One example was during our research visit to the
Alto de Lipangue area, to look at the 6,000 feet of electrical lines put in by the Chilean
government to their Emergency Operations Ratio Tower that is located on our summit, we were
witness to two significant aftershocks. The ground shook violently causing huge rockslides that
blocked our North access road down the mountain. With the assistance of our miners, we were
able to clear the road sufficiently to get down to Lampa and back to Santiago.
But, in summation, we were finally able, through multiple meetings with a Major group, to secure
a “signed and acceptable offer sheet” outlining their entire proposal to Medinah Minerals, Inc.
Their actions and performance in accordance with their offer will be detailed as we move
through the overall staged process with the clear understanding that we are under Non-
Disclosure mandates. We feel we have real value potential, but until we have the check and “it
clears” we will continue to exhaust every effort to secure contingency offers.
Each of the other potential Joint Venture Agreement partners was admonished to complete their
delineated offer sheets for our review and assessment of content as soon as possible, with the
understanding that there is no business normalcy occurring in Chile at this time.
The traveling Medinah representatives have now returned to USA soil after a 24-hour debacle of
cancellations and rescheduling dilemmas. Finally, the trip can be categorized as rewarding in
that a much better comprehension of Medinah’s overall potential was determined.
Management and the Board of Directors will rapidly entertain, assess and review the remaining
offers when received. Comparison with the “received offer sheet financing agreement” and the
reality as to the best-case prospects for the future of Medinah will be decided and acted upon as
quickly as humanly possible.
Board of Directors
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