Cotton & Western Mining Inc. (CWRN)

[pesquero]

Even here in Mexico, one can screw around with the values on a Municipal or State issued permit (building permit etc.)without fear of much more than paying a fine if you're discovered, which is very rare.

BUT, using numbers on a an Official FEDERAL Export/Import Document which are LOWER than the actual value is likely to lead to lead to armed Customs Agents arriving at your door. All it takes is an anonymous call to the authorities.

At which time you had damn well be ready to prove that you DID NOT RECIEVE MORE (either directly or indirectly)for the product exported, or they just cart you off to jail. In ALL matters in Mexico, you are guilty until proven innocent.

Even the Mining Law (enforced by the same branch of Government as Customs and Taxes)itself has specific provisions for the revocation of Mineral Concession Titles for failure to properly report the value of minerals extracted and sold. Since neither CWRN or PAN AM actually own the Guadalupe Concession, but rather just have a contract to mine it, they would be placing the owner's title in jeopardy.

There are several Iron Ore Exporters (Brokers) in Lazaro Cardenas and Manzanillo who are currently running from the law rather than try to defend themselves against Federal allegations of "Export Transfer Pricing" to avoid Corporate Income Taxes.

I for one certainly hope that Cotton didn't make such an "error".

On the other hand, if the $80 price is real, it brings up a lot of questions as to "why so low" in this very strong market?

Only the company can answer those questions, and I look forward to them doing so.