Stans Energy Appeals Inter-District Court Judgment
April 24, 2014 (Source: Businesswire) — Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), (“Stans” or the “Company”), reports that it has filed an appeal to the Bishkek City Court in response to the ruling from the Inter-District Court of Bishkek (the “Court”) in favour of the Kyrgyz General Prosecutor’s Office (“GPO”) claim against Stans’ wholly owned Kutessay II Project.
This administrative case was filed on March 26, 2013 against the State Agency on Geology and Mineral Resources under the Government of the Kyrgyz Republic (“SGA”) to annul the December 21, 2009 Minutes of Negotiations (registration No. 1736-H-09) between the SGA and public company OJSC Kutisay Mining (100% owned by the Government of KR). Kutisay Mining LLC is involved in the case as a third party.
On March 19, 2014 The Bishkek Inter-District Court granted the claim of the GPO and cancelled Minutes No. 1736-H-09 of the direct negotiations between the SGA and OJSC Kutisay Mining dated December 21, 2009. This ruling thus invalidates the process in which the mining licence for Kutessay II was acquired.
The primary rationale behind the judgment of the Bishkek Inter-District Court was that the SGA was not objecting to the facts of the case as put forth by the GPO, which had been submitted to the court on May 29, 2013. Stans believes the SGA’s conduct of the SGA’s own defense was improper, and as a consequence, the GPO was able to prevail in the Inter-District Court.
Based on this and other mitigating factors the Company has filed an appeal to the Bishkek City Court seeking to:
1. Annul the Bishkek Inter-District Court judgment dated March 19, 2014
2. Dismiss the claim of the General Prosecutor’s Office of the Kyrgyz Republic for cancellation of Minutes No. 1736-H-09 of direct negotiations between the state Agency for Geology and Mineral Resources under the Government of the Kyrgyz Republic and OJSC Kutisay Mining dated December 21, 2009.
Get our daily investorintel update
Stans international arbitration suit is ongoing with the next hearing scheduled for April 29, 2014. A final decision will be handed down shortly thereafter regarding the $117,853,000 USD claim brought by the Company against the Government of the Kyrgyz Republic.
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.
We seek safe harbour.
FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, use of proceeds from the Offering, the completion of the Offering, the continued advancement of the company’s general business development, research development and the company’s development of mineral exploration projects. When used in this press release , the words “will”, “shall”, “anticipate”, “believe”, “estimate”, “expect”, “intent”, “may”, “project”, “plan”, “should” and similar expressions may identify forward-looking statements. Although Stans Energy Corp. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.
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>