EDITOR: | April 9th, 2014 | 10 Comments

Stans Energy Chairman provides update on international arbitration case on Kyrgyzstan rare earth claim

| April 09, 2014 | 10 Comments
image_pdfimage_print

Weslosky-IrwinApril 9, 2014 — Rodney Irwin, Chairman and acting President of Stans Energy Corp. (‘Stans’, TSX-V: HRE | OTCQX: HREEF) speaks to Tracy Weslosky, Editor-in-Chief and Publisher of InvestorIntel about the complexities of Kyrgyzstan and how Stans has managed to deal with them and one of the most recent and flagrant examples has been the Inter-District Court of Bishkek ruling in favor of the Kyrgyz General Prosecutor’s Office (SPO) with respect to its claim regarding Stans’ Kutessay II Project. The decision, as it stands, would essentially imply the annulment of Stans’ whole license acquisition process.

Stans has regularly defended itself, producing all relevant documents filed since the outset of its venture. Rodney says that Stans “is waiting for a written decision from the Court [of Bishkek] and then we’ll take it for appeal to a higher court.” Nevertheless, Stans remains optimistic and maintains an active operations timeline “although the Kyrgyz Government is never above throwing you a curve; and one of the curves simply means that the government has fallen and that we’ll have a new one.” That always means that officials and ministers change and you have to go through a period to get them back working and signing documents. But, we feel that we’ve stayed on target with our principal issue, which is our international arbitration where we’re suing the government of Kyrgyzstan for effectively preventing us from working on developing our mine and we think that that the arbitration process is going to come to a conclusion fairly shortly.”

Rodney expects that Stans will be slowed down by a matter of months, if not weeks, and that in the grand scheme “it’s not all that serious” a delay. There may even be a benefit. Rodney says that the recent decision by the Court “supports our arbitration case, where we have said that effectively the government has prevented us from being able to develop our mining property. And this case, which the Government has brought against us and has won in the interim, until we go to appeal, presents us with more evidence that we can deliver to the arbitration court, not permitting us to develop my mining property is effectively an expropriation.”

On the technical side, aside from the emerging market risk, Stans offers a great advantage in that “we have taken over a project that historically operated in the good old days of the USSR. This was a rare earth mine that produced a lot of rare earths and when the USSR collapsed, this mine was effectively closed down.” Moreover, the mine has an associated processing plant, which Stans purchased and has been putting back together. This means that Stans has the right metallurgy to produce the oxides and metals. In the Soviet period, the Kashka Rare Earth Processing Plant (KRP), as it was known, was used to produce some 120 different metals, alloys, and oxides. The Kutessay-2 field during Soviet times delivered up to 80% of the USSR’s rare earth supply. Kutessay-2 contains up to 15 rare-earth elements, as well as lead, zinc, silver, bismuth, molybdenum, thorium, tin, and copper. In addition, it contains niobium, tantalum and hafnium.

The only obstacle standing between Stans moving to full operation is the Government’s obstruction, which will be dealt by the arbitration process.

Disclaimer: Stans Energy is an advertorial member of InvestorIntel

 


InvestorIntel

Editor:

InvestorIntel is a trusted source of reliable information at the forefront of emerging markets that brings investment opportunities to discerning investors.


Copyright © 2016 InvestorIntel Corp. All rights reserved. More & Disclaimer »


Comments

  • J. Best

    Thank you Tracy for this riveting interview and update from Stans. I have been following the story since I started using your site as a resource just over a year ago and am amazed that this can be going on in 2013/2014 anywhere! I wish them all the best for a well-deserved good outcome.

    April 9, 2014 - 9:30 AM

  • Mortimer

    Thanks Tracy for the interview with Rodney .

    April 9, 2014 - 9:40 AM

  • GEORGE Armstrong

    The legal system that we are used to in North America traces its origin to magna carta in 1215. Many third world world countries, especially states which used to belong to the USSR do not have the same sense of fairness when it comes to individual vs. state that we have been born with. I think that Stans has an excellent case but I am afraid that an appeal court in central asia might not agree. Best wishes to Stans!

    April 9, 2014 - 10:52 PM

    • David Mortimer

      They signed international agreements to protect investors so if they break those agreements it really is not good for investment in their country . We should at lest be compensated for wasting our money and time .

      April 10, 2014 - 6:47 AM

  • Erryl

    Shareholders reassured that Stans is on track? Surely, you are kidding. It may not be their fault, but you can hardly describe the situation as being “on track.” I think closer to the mark might be nearly hopeless. We can hope that the new government is pro business investment. I don’t see this as the most likely outcome. The past has been all lip service…

    April 10, 2014 - 7:24 AM

    • David Mortimer

      We still have a chance to put serious pressure on them and win our arbitration case $117,000,000 is a big dent in their bank balance which would give them serious indigestion .

      April 10, 2014 - 7:42 PM

  • Mike Jones

    Stans Energy is without a shadow of a doubt a winner in the REE space. Be ready and watch the SP rise to all time highs once the arbitration case is resolved.

    April 14, 2014 - 3:31 PM

    • David Mortimer

      I like your positivity and I hope you’re right.

      April 15, 2014 - 5:57 PM

  • J. Best

    Hoping to see this company succeed. Most would not have made it this far. Good Luck to Stans Energy.

    April 16, 2014 - 11:15 AM

    • jochen reuter

      I think so too. they will succeed and if not, KG will be burnt as a location for the mining industry. I only wonder why tracy was so positive , when she announced the forthcoming video with the Stans CEO. In the interview itself there was no particular info…..

      Nevertheless: Stans vs. KG ist david vs. goliath, but I am optimistic, averaging down since 2 years, but still with a big loss.
      the stans team is until the end of the month in KG. plenty of time for KG authorities to show that it is a place to invest. If not we (investors) bit also KG are burnt.

      The outcome will depend on the lawyers of KG, Zeiler /from schönherr/vienna: he has to “explain” to his clients the SWOT logics.

      April 16, 2014 - 12:31 PM

Leave a Reply

Your email address will not be published. Required fields are marked *