Mr. Armando Obre

April 15, 1983 Mr. Armando Obre Rm. 501, Borja Building Rizal Avenue, Manila Sir : This refers to your letter, dated March 22, 1983, requesting information on the queries posed therein. It appears therein that you are in the process of forming a mining corporation wherein you intend to use as your paid-up capital the present net value of a certain mining property the value of which has been previously determined by the Bureau of Mines and Geo-Sciences, pursuant to Section 94 of P.D. No. 463, as amended by Section 24 of P.D. No. 1385. LibLex You now pose the queries quoted hereunder: "1. Can we apply the full amount of the present net value of the mining property for the paid-up capital of our proposed corporation? 2. Aside from the appraisal report of the Bureau of Mines and Geo-Sciences, what are the other documents that will be required to be submitted relative to the intended paid-up capital?" Your first query is answered in the affirmative, provided, however, that the value of the mine, mining claim or claims has been appraised or determined by the Director of the Bureau of Mines & Geo-Sciences or his duly authorized representative (Sec. 94 * , P.D. #1385). The present net value of the said mining property must be confirmed directly to this Commission by the Bureau of Mines & Geo-Sciences. Anent your second query, where mine, mining claim or claims are made basis for the paid-up capital in the formation or organization of a corporation, in addition to the preceding paragraph, the following must be submitted: a) Copies of the Lease Contract on the Mining claims issued in favor of the claimants; b) Deed of assignment executed by the claimants in favor of the corporation in consideration of the shares of stock of the latter. Please be guided accordingly. Very truly yours, (SGD.) JESUS J. VALDES Associate Commissioner * Copied verbatim from the documents obtained directly from the Securities and Exchange Commission.