Stans Energy Corp.: Kyrgyz Government Continues Obstructive Legal Challenges
May 23, 2014 (Source: Businesswire) — Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), (“Stans” or the “Company”) reports that the Government of the Republic of Kyrgyzstan continues to use obstructive legal maneuverings to delay the successful conclusion of the international arbitration case brought against it by the Company.
Recently, the Company has been informed that a newly formed Centre of Court Representation of the Kyrgyz Republic (the “CCR”), submitted claims to a local Moscow Arbitration Court to seek to invalidate the jurisdiction of the International Arbitration Court at the Moscow Chamber of Commerce (the “Court”). Furthermore the CCR has submitted claims to the Economic Court of the Commonwealth of Independent States (with the request to give interpretation of Article 11 of the Convention) seeking to challenge the application of the Convention for the Protection of Investor’s Rights of which Kyrgyzstan is a signatory.
During the proceedings at the Court, representatives of the Kyrgyz Government submitted that the Court did not have jurisdiction on the matter before it. On March 31, 2014 after deliberation of these arguments by the arbitrators, the Court upheld its own jurisdiction over the matter between Stans Energy Corp and the Government of Kyrgyzstan.
According to the Company’s arbitration counsel in Moscow, these new claims are defective, and meritless.
“It is unfortunate that the Kyrgyz Government continues to obstruct meaningful dialogue with Stans Energy in light of our recent victory in International Arbitration. Their refusal to respect internationally recognized venues of conflict resolution demonstrates their unwillingness of resolving our issues outside of a court room. We remain committed to working with the Kyrgyz Government to negotiate a solution that will allow us to resume development at Kutessay II. However, Stans Energy reserves the right to act accordingly in the best interests of its shareholders. The recent ruling by the Ontario Court of Appeals paves the way for the company to enforce its’ judgment should the result of ongoing negotiations prove futile,” states Interim-President and CEO, Rodney Irwin.
The International 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 will take up to three months from the time of the final ruling which has been handed down April 30, 2014.
Get our daily investorintel update
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.
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.
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>