Stans Energy Continues to Seek Enforcement of International Arbitration Ruling
August 5, 2014 (Source: BusinessWire) — Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), (“Stans” or the “Company”) has been informed that the Bishkek City Court (the “Court”) on July 30, 2014 has ruled in favour of the Kyrgyz General Prosecutor’s Office (“GPO”) with respect to its claim regarding 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 JSC Kutisay Mining (100% owned by the Government of KR). On March 19, 2014, the Inter-District Court of Bishkek found in favour of the GPO and ruled to annul the minutes of the meeting that resulted in the 20-year mining licences for Kutessay II and Kalesai deposits being acquired by Stans through auction in 2009.
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The Company has the right to appeal to the Kyrgyz Supreme Court to contest this ruling by the Court. The Company also has the option to seek compensation for costs incurred during the acquisition of the Kutessay and Kalesay deposits that were not included in the international arbitration claim filed by the Company at the Moscow Chamber of Commerce and Industry.
“In light of a recent proposal submitted by Stans on July 2, 2014 to the Government of the Kyrgyz Republic that provided a framework for the development of Kutessay II, it is disappointing that the Government continues to negotiate in bad faith. On July 9, 2014, as required by standard legal procedure, a voluntary payment request was sent to Prime Minister Otorbaev requesting $118 million, as awarded to the Company by the International Arbitration Court at the Moscow Chamber of Commerce and Industry. This ruling by the Bishkek City Court is evidently the Government’s response to our proposal and voluntary payment request. In view of this action by the Government, our legal team is completing the required filings necessary to proceed with the collection process to secure the $118 million awarded by the Arbitration Court,” stated Rodney Irwin, Interim President and CEO.
English and Russian versions of the recent rulings in favour of the Company from both the International Arbitration Court at the Moscow Chamber of Commerce and Industry and the Moscow Arbitration Court are now available for review at www.stansenergy.com/investors
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>