| | | August 10, 2012
MBMI Announces Philippines Court Decision on FTAA
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| | Richmond Hill, Ontario August 10, 2012 -- MBMI Resources, Inc. ("MBMI" or the "Company") announces that the (Former) Fifth Division of the Court of Appeals in Manila, Republic of the Philippines has recently issued a resolution dated July 27, 2012 (the "Resolution") in response to the motion for reconsideration filed by Narra Nickel Mining and Development Corporation, Tesoro Mining and Development, Inc., and McArthur Mining, Inc. (subsidiaries of MBMI), where they asked for a reversal of the Court of Appeals' previous decision affirming the Office of the President's Resolution, which ordered the cancellation and/or revocation of their Financial or Technical Assistance Agreement ("FTAA") with the Republic of the Philippines. The FTAA is necessary for MBMI and its subsidiaries to explore and develop its primary property in Palawan, Philippines.
The background of the case is as follows: On April 5, 2010, a Financial or Technical Assistance Agreement ("FTAA") was issued in the name of Narra Nickel Mining and Development Corporation, Tesoro Mining and Development, Inc., and McArthur Mining, Inc. for the purpose of large scale exploration, development and commercial exploration of possible mineral resources in an initial contract area over the municipalities of Rizal, Bataraz, and Narra in Palawan, Philippines. On May 7, 2010, Redmont Consolidated Mines Corporation filed a petition for cancellation and revocation of the FTAA issued. The petition resulted in the decision dated April 6, 2011 and resolution dated July 6, 2011, rendered by the Office of the President of the Philippines which ordered the cancellation and/or revocation of the FTAA. The Court of Appeals affirmed the decision and resolution of the Office of the President in its Decision dated February 23, 2012.
In their joint motion for reconsideration of the February 28, 2012 Decision of the Court of Appeals, MBMI's subsidiaries argued that the Office of the President's decision to terminate their FTAA was issued without jurisdiction and in disregard of pending proceedings involving the same issues which are currently before the Supreme Court of the Philippines.
MBMI's subsidiaries also questioned the unilateral cancellation of the FTAA despite the contract's provision expressly requiring resort to arbitration in order to effect a valid rescission of the FTAA. They also pointed out that the unilateral cancellation of the FTAA was issued pursuant to a petition filed by a person (Redmont Consolidated Mines Corporation) who is not a real party in interest.
In its Resolution, the Court of Appeals denied the motion for reconsideration on the reasoning that the mining companies purportedly failed to provide any cogent reason to disturb its earlier ruling. Said the Court of Appeals: "[T]he grounds raised [in the motion for reconsideration] have already been amply discussed and passed upon in the Decision dated 23 February 2012."
MBMI believes that the Resolution is not consistent with prevailing law and jurisprudence. MBMI will be filing a Petition for Review with the Supreme Court of the Philippines to question and seek the reversal of the decision and resolution issued by the Court of Appeals.
Contacts:
For further information relating to the Company or this release, please refer to the Company's website at www.mbmiresources.com or contact John Wong, President and CEO by telephone at 905-886-3888 or by email at mbmi@mail.com.
Cautionary Statement:
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
The foregoing information may contain forward-looking statements relating to the future performance of the Company. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from the Company's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by the Company with the TSX Venture Exchange and securities regulators. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. |
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