By Business Wirevia The Motley Fool
Filed under: Investing
Medinah Minerals Announces Sale of Ciclon I & II Properties
LAS VEGAS–(BUSINESS WIRE)– 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.