Ontario Court of Appeal Sets Precedent for Asset Seizure by Stans Energy
May 5, 2014 (Source: Businesswire) — Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), (“Stans” or the “Company”) is pleased to announce that a recent Ontario court decision in another matter involving another illegal expropriation in the Kyrgyz Republic gives the Company some reassurance that these international arbitration awards can be enforced locally, and can help to satisfy an award Stans may be given by the arbitration panel.
In a decision released April 15, 2014, (SistemMuhendislikInsaatSanayiVeTicaretAnonimSirketi and Kyrgyz Republic and Kyrgyzaltyn JSC) our Ontario courts ruled that the Kyrgyz Republic had an “equitable or other interest” in shares of Centerra Gold held by Kyrgyzaltyn and that such shares could be seized in Ontario to satisfy an international arbitration award made against the Kyrgyz Republic. In the Sistem case, on September 9, 2009, an arbitral tribunal held that the Kyrgyz Republic was legally responsible for the illegal expropriation of the Hotel Pinara and was ordered to pay to Sistem $8.5 million US plus interest and costs. The arbitral award was final and binding. Sistem sought to have the order recognized and enforced in Ontario. On January 5, 2011, the Ontario courts granted an Order recognizing and enforcing the award in Ontario and ordering the Kyrgyz Republic to pay Sistem in accordance with the arbitration award. After numerous motions based on jurisdictional issues and substantive issues, it is now clear that Kyrgyz Republic assets, such as Centerra Gold shares, may be attached through the processes of the Ontario courts.
“Stans Energy is committed to working with the Kyrgyz Government to negotiate a solution that will ensure the safety and security of capital investment moving forward. This recent ruling by the Ontario Court of Appeals paves the way for the company to enforce redress should the result of ongoing government negotiations prove fruitless,” states Interim-President and CEO, Rodney Irwin.
The Arbitration Court at the Moscow Chamber of Commerce is now preparing a written ruling, which will detail the verdict and the final damage amount. This process may take up to three months. Once Stans will receive the written ruling, a press release will be issued outlining those details.
On October 30, 2013, Stans Energy Corp. and its subsidiaries filed a claim for arbitration under the Convention for the Protection of Investor’s Rights to which Kyrgyzstan is a signatory. The arbitration hearings were held at the Arbitration Court at the Moscow Chamber of Commerce and Industry. On April 30, 2014 the Court ruled in favour of the Company and is now preparing a written ruling that will outline the reasoning behind the verdict and a final amount to be awarded for damages to the Company.
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The claim seeks $117,853,000 in compensation for losses and damage.
About Stans Energy
Stans Energy Corp. is a resource development company focused on progressing Heavy Rare Earth (HRE) properties in areas of the Former Soviet Union. In December 2009, Stans acquired a 20-year mining license for the past-producing Kutessay II rare earth mine from the Kyrgyz Republic. On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Processing Plant (KRP) the same plant that previously refined REEs historically from Kutessay II. The KRP was the only hard rock plant to produce all rare earth elements outside of China, producing 120 different metals, alloys, and oxides. For over 30 years, Kutessay II produced 80% of the rare earth metals for the former Soviet Union.
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Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>