Medinah Minerals, Inc. (OTC/PINK:MDMN), announced today the sale of
certain of the Company’s interests located near Copiapo, Chile.
As has been previously reported, Medinah Minerals, Inc. owns a ten
percent (10%) interest in each of the Chilean properties referenced as
the Ciclon I and Ciclon II grouping of claims. These claims are located
outside of Copiapo, Region III, Chile.
On March 30, 2013, Serena Minerals, a Chilean subsidiary of an
Australian mining company, made an offer to purchase the entire Ciclon I
and Ciclon II claims group. The purchase offer has been signed and
accepted by the Ciclon land owners, including Medinah Minerals, Inc. as
to its combined 20% net interest.
The purchase price is $5.4 million. The initial payment of $500,000 is
scheduled on May 27, 2013 and the $4.9 million balance is to be paid
over a 4-year period, or sooner. This will net Medinah Minerals, Inc.
$1.08 million.
In addition, Serena Minerals has evidenced the required funds and taken
on the obligation to allocate $3 million for exploration and drilling to
establish the minerals reserves of the deposit. It should be noted that
Medinah Minerals, Inc. will not be required to fund any portion of the
exploration or drilling needs of the Ciclon project.
Ciclon I & II land owners retain a 4 percent net smelter royalty (NSR)
holding, ad infinitum. The contract also provides that if the Ciclon
group of claims results in reserve estimates exceeding one million
tonnes of copper with a grade of +0.6% copper, the sale price
accelerates by an additional $5 million dollars.
The Purchase Agreement is subject to the Ciclon I & II land owners
providing clear and unfettered claims titles within 60 days of the
Option Agreement.
About Medinah Minerals, Inc:
Medinah Minerals, Inc. (ticker symbol: MDMN) is headquartered
corporately in Las Vegas, Nevada. Medinah is a Junior Mining Exploration
company with properties located throughout the country of Chile. The
Company’s assets consist primarily in claims that indicate potential
high-grade deposits consisting of gold, silver, copper and molybdenum.
At present, Medinah Minerals, Inc. has a Purchase Contract to sell its
Altos de Lipangue claims holdings for a final price of
US$180,000,000.00, while retaining a 15% free-carried interest in the
results of all future mining operations on the 1,508 claims.
Medinah Minerals, Inc., claims are fully registered with the Chilean
Ministry of Mines through Medinah Mining Chile, which is recognized
under Chilean "Mensura" Mining Laws. The Company is continually
expanding its property holdings, and now owns all or a percentage of
over 15,000 hectares of mining claims.
More information is available at: http://www.medinah-minerals.com
Note: This News Release may contain certain “forward-looking statements”
within the meaning of the US Securities Exchange Act of 1934, as
amended. All statements, other than statements of historical fact,
included in this release, including, without limitation, statements
regarding potential mineralization and reserves, exploration results,
and future plans and objectives of Medinah Minerals, Inc. are
forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate
and actual results and future could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company’s expectations are
disclosed under the heading “Risk Factors” in documents filed from time
to time with the SEC and other regulatory authorities.