Medinah funds Alto de Lipangue

Denver — Medinah Mining (MDMN-O) has raised US$5 million for development of the Alto de Lipangue gold-copper project in Chile by selling a 25% stake in the property to London-based Venture Capital Corp.

The funds are non-repayable and non-convertible into any equity position. Medinah and Venture Capital would split any mining revenue from the claims on a 75-25 basis. The transaction is subject to due diligence by Venture Capital and is expected to close in mid-May.

Medinah will use the funds to accelerate deeper drilling aimed at intersecting the suspected porphyry body at depth. To date, 18 drill holes (4,800 metres) have followed the known breccia bodies downdip. Results indicate a change in the style of alteration at depth, consistent with porphyry-style mineralization.

A fourth phase, consisting of eight holes, will be carried out at an estimated cost of US$320,000.