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would be rescinded and NUOCO would retain their original rights and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
Vittal Karra
Chairman/President
Medinah Minerals, Inc.
Copyright Business Wire 2015