http://www.medinah-minerals.com/shareholder_letter_031810.html
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
