“GRANDFATHERING” THE PETITIONERS

1. MCARTHUR MINING:

 MPSA was obtained from Madridejos Mining Corp (MMC) from Sara Marie Mining Inc (SMMI)
o Its shareholders are:
 MMC – highest amount subscribed at P5.9M
 MBMI – highest paid subscription at P1.8M
 Salazar
 Eguerra
 Agcaoili
 Mason
 Cawkell
 From Salazar to Cawkell – only 1 share each

 Studying the structure of MMC:

o MMC has exactly the same structure and shareholders with McArthur, except that one of its
subscribers is Olympic Mines and Dev. Corp

 Absurdly, Olympic, even if it is the major stockholder, failed to pay any amount with respect
to its subscribed shares.
 MBMI has paid the highest amount at P2.8M

2. TESORO MINING AND DEVELOPMENT INC

 MPSA was obtained from SMMI

 Has exactly the same corporate structure with the same figures down to the last centavo with McArthur
 Exactly the same shareholders, except with the addition of SMMI

 Studying the structure of SMMI:

o Same with MMC, Olympic is the major stockholder but has failed to pay any amount with respect to its
subscribed shares
o MBMI instead has paid the highest amount at P2.7M

3. NARRA NICKEL MINING

 MPSA was obtained from Patricia Louise Mining and Dev Corp (PLMDC)
 MBMI and along with the nominal shareholders mentioned above (Salazar to Cawkell) are present in Narra’s
structure

 Studying the structure of PLMDC

o Major Stockholder – Palawan Alpha South Resources – 0 paid
o MBMI – 2nd major stockholder – HIGHEST paid at P2.7M
o For the nominal shareholders – SAME - 1 share each at P1000.

IN A NUTSHELL:
 MBMI has joint venture agreements with OLYMPIC (highest shareholder of MMC and SMMI with ZERO paid up
subscription) and with PALAWAN ALPHA (highest shareholder of PLMDC with 0 paid up subscription)

o Not only that, MBMI has the highest paid up subscription in the petitioners corporation – hence, by
grandfathering – IT CONTROLS 60% OR MORE of the petitioner corporations.