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Pearl Asian Mining Industries to Capitalize on the Fiscal Incentives Offered by the Philippines Government for Masbate XYZ Gold Mine-Site & Cebu Gold Refinery
MANILA, Philippines--(BUSINESS WIRE)--April 10, 2006--
Pearl Asian Mining Industries (OTC: PAIM):
-- Utilizing These Incentives Will Allow Pearl Asian Mining to
Import Capital Goods and Equipment Duty and Tax-Free, Which
Translates to a Reduction in Capital Investment Ranging from
15-22%, Thus Improving Profitability
Pearl Asian Mining Industries, Inc. (OTC: PAIM) announced today that it has filed applications for fiscal incentives from a Philippines government agency. The Philippines Board of Investments (BOI) has formally advised Pearl Asian, based on the initial review of applications and documents submitted, that the company may qualify for BOI registration for its XYZ Gold Mine Site in Masbate Island. The application also applies to our gold processing facility in Cebu Island. This should entitle Pearl Asian to fiscal incentives under the 2005 Investments Priorities Plan, under mining and processing of minerals. These incentives include an income tax holiday for 6 years, which may be extended to 7 years. The importation of supplies and equipment duty and tax-free; exempt from wharfage dues and export taxes; tax credits on raw materials and supplies; and additional deductions from taxable income, among others. The immediate noticeable benefit for Pearl Asian of these incentives is the duty and tax-free importation of goods, which would translate to a reduction in capital investment/initial expenses ranging from 15-22%, thus improving profitability.
These applications grant Pioneer Status to companies that locate in under-developed areas, like Masbate Island, and those that utilizes new technologies such as the state-of-the-art precious metal refining plant to be set up on Pearl Asian's industrial lot in Mandaue City, Cebu. Pearl Asian shall comply with all necessary requirements for the registration, and has already published its first notice in the Philippine Star, on April 9, 2006 as an additional required step.
"Pearl Asian Mining Industries is closely coordinating with the BOI to secure registration for Pioneer Status within the month of April, 2006," says Anthony Val Gary Gotanco, Vice-President/Business Development and Head of the Chemical-Metallurgical Lab. He adds, "All of our activities are being planned and executed to ensure that funds are efficiently utilized. Especially, that we shall soon be importing a number of equipment to be used for the mine-site and the gold refinery. We shall ensure that profitability is maximized, as a result." Prior to joining the company Mr. Gotanco had more than 8 years' experience dealing with government agencies involved in granting of incentives, tariff protection, and release of imported goods.
In a related development, the permits and licenses for the construction of the gold refinery in Mandaue City, Cebu are already in processed. "We are targeting start of construction of the gold refinery and laboratory complex in June, 2006," exclaimed Mr. Gotanco.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding the Company's projections regarding gold production in future periods. Factors that could cause actual results to differ materially from anticipated results include risks relating to estimates of reserves, mineral deposits and production costs; mining and development risks. The risk of commodity price fluctuations; political and regulatory risks; risks of obtaining required operating permits and other risks and uncertainties. Penny Stocks are very highly speculative and may be unsuitable for all but very aggressive investors. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Source: Pearl Asian Mining Industries Inc.