Medinah Minerals, Inc. (OTCMKTS:MDMN) Comes Up With Yet Another Joint Venture Announcement
Yesterday the stock of Medinah Minerals,Inc (OTCMKTS:MDMN) managed to surge up the chart by nearly 23% closing the session at $0.086. Initially there were no signs that the stock was going to make such a jump – the first half the session saw no major movement in either direction while traded volume remind minimal. Then the management of the company decided to do what they do best and announced another joint venture.
It seems that the news was enough to put investors in a state of buying frenzy and in the remaining four hours of trading they managed to shift more than 10 million shares. The dollar volume for the day surpassed $800 thousand. Unfortunately the PR in a true MDMN fashion contained absolutely no useful information.
Apparently the company has accepted an offer for a joint venture by an unnamed party without doing any due diligence. In fact, MDMN‘s management is going to fly to Peru and Chile on June 23 in order to do the necessary due diligence and to determine the responsibilities of each party. Furthermore the possible contract needs to comply with both Chilean and Peruvian law. Investors should also consider the fact that Jose Roberto de Romana Letts, one of MDMN‘s board members, is an affiliate of the unnamed joint venture partner.
With so little information it is doubtful how long the stock will be able to maintain its positive momentum. MDMN has made numerous similar spikes on numerous similar PR announcements in the past. Less than a month ago, at the start of May, it made an impressive run up the chart on the news that a group of “well-known” Peruvian mining experts made an offer for the development of MDMN‘s Altos de Lipangue properties. The final decision should have been made before June 9 but in light of yesterday’s announcement it is apparent that MDMN declined that offer.
If this new joint venture will have a different fate remains to be seen. Until then any investment in the stock should be 
preceded by doing your own research and taking into account the other red flags around the company.
preceded by doing your own research and taking into account the other red flags around the company. Yesterday the stock of Terra Tech Corp. (OTCMKTS:TRTC) was able to recover some of its lost value and closed the session 15% in the green at $0.49 despite their failure to obtain a permit for a medical marijuana dispensary in Clark County. One of the biggest losers for the day were Active Health Foods, Inc. (OTCMKTS:AHFD) who wiped 23% of their value and dropped down to $0.0023 despite the ongoing paid pump for their stock.
