Medinah Minerals (Chile) S.A. New Details Altos de Lipangue Property, $180 Million Dollar Contract.

July 24, 2012 - PRLog -- SHAREHOLDER UPDATE
July 17, 2012

Management of Medinah Minerals (Chile) S.A. reports the following developments:

At the request of the purchasers of the 1,508 Altos de Lipangue group of claims, Medinah Minerals (Chile) S.A. Management travelled, during the second week of July, to New York City. The multi-purposes of the trip were to clarify funding and legal issues in the original contract that had caused concern among the purchasing group and their legal counsel, and to then finalize terms of the sale and funding contract.

On July 12, 2012, a final modified contract was signed by all parties and is being transported to Chile by Juan José Quijano Fernández. The new contract contains the identical Terms & Conditions as the original contract, with the exception of the reworking of funding/ownership percentage stipulations and claims areas of contention. Señor Quijano will meet with the purchaser’s Chilean Lawyers and properly register the new contracts with the Chilean Government/Ministry of Mines.

The parties remain bound by a less restrictive Non-Disclosure clause. With the concurrence of the Purchasing Group the primary terms of the Purchase and Sale Agreement can be reported as follows:

1. In exchange for the Lipangue claims, the transferring parties shall receive an aggregate of USD $180,000,000 (One Hundred and Eighty Million US dollars).

2. In exchange for the Lipangue claims, the transferring parties shall receive shares of the Chilean acquisition subsidiary equal to 15% of the total outstanding share capital of the acquisition subsidiary. The final ownership of the entire Lipangue property is 85% to purchaser and a 15% non-dilutable percentage to the Altos/MDMN partners.

3. As security for the payment of the USD $180,000,000, the transferring parties will receive USD $54,000,000 worth of shares of a newly amalgamated mining company whose shares are being registered for trading on the Crest System at Euroclear and subsequently in the United States. The Mining Company owns the majority property interests of mines in Canada; Chile; Suriname and the United States.

4. The transferring parties will receive seven payments of a minimum of USD $18,000,000 (Eighteen Million US dollars) each annually toward the end purchase price of USD $180,000,000 (One Hundred and Eighty Million US dollars).

5. The transferring parties have the right to sell 10% of the pledged security for USD $5.4 million to the purchaser’s associates. The transferring party has exercised this option.

6. Until the purchase price has been paid in full, the purchaser shall pay to the transferring parties, a net smelter royalty of 7.5% of the production of all minerals from the Lipangue group of claims.

7. The purchaser will commence an extensive exploration and development program with a minimum of USD $5,000,000 (Five Million US dollars) in Year 1, commencing September 2012. The purchaser has confirmed the drilling contracts are in place.

8. The transferring parties proximity property claims, currently in production and pursuant to the contract with Compañia Minera LDM Chile, are excluded from the USD $180,000,000 (One Hundred and Eighty Million US dollars) Sale/Funding Agreement. The Purchasers retain a First Right of Refusal if the LDM Chile property is offered for sale to any third party.

The Purchasers have already retained a Professional Geologist in Chile who has been working on issues relative to the Altos de Lipangue properties. The Purchasers report that the P. Geo has developed a drill program that is scheduled to begin in September, 2012. The Purchaser’s Geologist has also investigated the ongoing work being done at the Las dos Marias Mining Operations (Compañia Minera LDM Chile) and has observed that the material being extracted from the adit is of ore grade that is scheduled to be shipped to the refinery for processing.

It should be noted that the Geologists reviewed the LDM Chile operation and traced its skarn zone on surface for at least 800 meters and at a width exceeding 20 meters. Further, they noted that the strike length and width, as determined by the Geologists, radically changes the potential tonnages and valuations of the Altos de Lipangue discovery zone. It is possible that this LDM Chile skarn discovery is related to several observed structures that occur across the entire Altos de Lipangue plateau.

Medinah Minerals (Chile) S.A. Management will follow this update with a further and separate progress report on the LDM Chile operations. The LDM Chile Company is applying for an Exploitation License from the Chilean Government which is required to further expand the scope of its mining operation.

Juan José Quijano Fernández
General Manager - Medinah Minerals (Chile) S.A.
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Note: This News Release may contain certain “forward-looking statements” within the meaning of the United States 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 Amarant Mining Limited, and 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” and elsewhere in documents filed from time to time with the United States Securities and Exchange Commission and other regulatory authorities.