September 17, 2008 Philippine Mines Adjudication Board Rules In MBMI's Favour
Vancouver, B.C., September 17, 2008 - MBMI RESOURCES INC. ("MBMI" or the "Company") (TSX V: MBR) is pleased to report that its Philippine partners have received a favourable ruling from their appeal to the Mines Adjudication Board ("MAB") of the Philippines Department of Environment and Natural Resources ("DENR") related to the Alpha Property, Bethlehem Property, and the two Rio Tuba Properties all located in the Province of Palawan.
The MAB ruling overturns a "status quo order" issued previously by a regional Panel Of Arbitrators in 2007 (see news release November 27 2007) pursuant to a challenge initiated by a 'shell company' known as Redmont Consolidated Mines Corp ("Redmont"). The Company and its Philippine legal counsel maintained that this challenge had no legal merit and was an attempt by Redmont and its backers to illegally gain an interest in these projects.
"The MAB decision removes the major hurdle that has delayed processing of the projects' full scale mine applications and is a positive step forward for the Philippine mining industry not only from a local prospective but also internationally. It will pave the way for the eventual development of down-stream metallurgical processing facilities in the Philippines which will benefit the Philippines mining industry as a whole," said Michael Mason, President and Director of MBMI.
Redmont and its backers had alleged in its Petition filed with the Panel Of Arbitrators in 2007, that Narra Nickel Mining and Development Corp. (Alpha property) McArther Mining Inc (Rio Tuba properties) and Tesoro Mining Inc. (Bethlehem property) were not Filippino corporations and as a result were not entitled to apply for MPSA or FTAA permits for their properties.
MBMI and its Philippine partners sought the advice of Philippine legal counsel in structuring their corporate holdings to ensure they were at all times compliant with Philippine law. The Mines Adjudication Board in its order, reversed and set aside the Panel of Arbitrators decision and the MAB dismissed the Petition filed by Redmont and its backers. This ruling validates the Philippine corporate ownership structure of MBMI and its Philippine partners and confirms this structure is consistent with accepted practice in the Philippines and is in compliance with the requirements of Philippine law.
The MAB in their order stated that: "The Board is satisfied that the Appellants have adduced sufficient evidence to prove that they are Filipino corporations. The Board does not concur with the Panel's conclusion that the said corporations failed the so called "control test", simply because MBMI Resources, Inc., a Canadian corporation and common stockholder of the Appellants, holds "the controlling interest in respondent companies" and hence "is the sole entity that stands to benefit most from MPSA application of the respondent Filipino companies". The MAB went on to state that "It is worth mentioning in this regard that the Securities and Exchange Commission (SEC) had previously rendered an Opinion- SEC Opinion 03-03-1998, where it ruled that it is the outstanding capital stock, and not the paid-up capital, that should be used as the basis for determining the nationality of corporations. Neither is the Board impressed with the Panel's convoluted and long-winded discussion of the "control test". A cursory perusal of the assailed Resolution would indicate that the Panel had neglected or omitted to cite legal provisions, statutory principles or jurisprudence in support of its conclusions. Instead, it is readily apparent that the Panel had indulged in unwarranted conjectures and dubious inferences, which hardly inspires confidence in the Panel's ability to competently resolve the dispute."
Mr Jose P. Leviste, Vice-Chairman of Narra Nickel, McArther Mining and Tesoro Mining, the operator of the projects, stated, "We are pleased that this interference in our efforts to develop a local resource which has the support of the people and government of Palawan has been stopped and that the attempted claim jumping by Redmont and its backers has been rejected. This project has brought significant tangible benefits to the people of Palawan to date and with MBMI's support we anticipate this continuing well into the future."
The Company's Philippine partners were granted Small Scale Mining Operating permits for the Alpha nickel property in Narra, Philippines which have enabled the evaluation, extraction, testing, and sales of nickel raw materials to Asian industrial consumers. The Full Scale Mine Applications related to the Alpha property and three other Palawan nickel projects are advancing through an approval process within the Philippine Department of Environment and Natural Resources (DENR) and once granted would allow for full-scale commercial production.
MBMI Resources Inc. is a Canadian-based mining company focused on the exploration and development of nickel mineral properties in the Philippines. MBMI and its Philippine partners control eight nickel laterite projects in the Philippines, covering an area greater than 22,000 hectares. MBMI's objective is to become a major supplier of high-grade nickel products to primary industrial consumers in Asia.
ON BEHALF OF THE BOARD OF DIRECTORS
"Michael T. Mason"
President and Director
Further Information
For further information relating to the Company or this release, please refer to the Company's website at www.mbmiresources.com or contact Investor Relations at 1-877-399-1991 or .
The TSX Venture Exchange has not reviewed and does not take responsibility for the accuracy of this release.
This news release may contain forward-looking information including but not limited to comments regarding the timing and content of upcoming financings, work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking information includes disclosure regarding possible future events, or conditions or results of operations that is based on assumptions about future economic conditions and courses of action, and therefore, involves inherent risks and uncertainties. Although management has a reasonable basis for the conclusions drawn, actual results may differ materially from those currently anticipated in such statements. At this time the Company has not yet established NI 43-101 compliant mineral resources or mineral reserves that would support a commercial mining operation.
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