Medinah Minerals, Inc. (OTCMKTS:MDMN)’s Strange Run Continues
After an uninspiring three months, Medinah Minerals, Inc. (OTCMKTS:MDMN) is once again making waves on the OTC. The company managed to double its share price in just six sessions, climbing from $0.04 per share to $0.08. This impressive run, however, is also a little confusing.
The only discernible trigger that could have caused such avid interest in MDMN stock seems to be the company’s last press release coming on April 25. Medinah announced that it received a written offer, coming from a ‘group of well known and highly qualified’ mining experts from Peru. The offer concerns the immediate development of the company’s entire Altos de Lipangue property.
The same release is riddled with a lot of other fluff that doesn’t mention anything specific beyond mining companies seeking to ‘expand their knowledge’ of the mining property. Despite the overall optimistic tone of the press release, it did nothing for the company’s price on the day it was published, nor over the following two sessions. MDMN started climbing on the last day of April, thankfully without any pump emails.
The run is somewhat difficult to explain considering the non-conclusive nature of the press release and the delayed price movement trailing it by two days. The company’s most current report is an annual containing the following figures:
- $337 thousand in cash
- $1 million in annual sales
- $343 thousand in net income from operations
The abovementioned press release also mentions that MDMN acquired 100% ownership in Medinah Mining Chile – the company that owned the Altos de Lipangue property. MDMN previously held 51% but acquired the remaining 49% through the payment of 35 million preferred shares that convert into 350 million common shares issued to MDMN president and CEO Mr. Juan Jose Quijano Fernandez and his family – the previous owners of the 49% stake. This is all described under ‘Related party transaction’ in the company’s annual report and was justified with the consolidation of ownership of properties to facilitate future sale or joint venture agreements.
Where the company is headed remains to be seen. Green runs as sharp as the one MDMN charted recently are often hard to sustain and are prone to quick and deep retraces. Investors are advised to conduct their own research and do their own due diligence before investing in any stock.
