Cotton & Western Mining Inc. (CWRN)

[pesquero]

AMENDED I will clear up some of the current questions:

1)"Mexico also exacts approximately a 30% tax on the product of a mining operation" This statement is incorrect. Mexico is one of the very few countries in the world which DOES NOT collect any Royalty on Mineral Products, either Federal, State or Municipal. There is currently a Bill pending in the Mexican Congress to impose such a "Mining Tax", but it is encountering very stiff resistance from the mining industry. There is however, a 30% Corporate Tax Rate in Mexico (named ISR) which is applied against NET EARNINGS AFTER DEDUCTIONS in almost exactly the same fashion as in the IRS collects 35% Corporate Income Tax in the US. Perhaps the poster confused the two very different issues.

2) "......Mexican law requires primary ownership of property interests by Mexican nationals" This is correct, but is only required for the DIRECT OWNERSHIP of "certain" property, including Mining Concessions. There is no restriction on the percentage of foreign ownership of that subsidiary. As CWRN does not "own" any Mining Concessions in Mexico, but is rather just acting as "Contract Miner", it was NOT necessary to create Pan Am for that particular purpose per se, although it is necessary to have a Mexican subsidiary in order to have employees etc..