Stans Energy Legal Update
May 3, 2013 (Source: Businesswire) — Robert Mackay, President and CEO of Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), (“Stans Energy” or the “Company”), reports that the Inter-district Court of Bishkek, at the request of the State Prosecutors office of the Kyrgyz Republic, has issued an injunction to suspend communications between Company’s subsidiary ‘Kutessai Mining LTD.’ and the State Geological Agency of the Kyrgyz Republic (SGA), until such time that an ongoing court case is resolved. Both parties had been named as defendants in a case where the State Prosecutor’s Office put forth an application to lift the three year statute of limitations to allow them to present to the court their claim of request to nullify the minutes of the December 21, 2009 meeting between the Kyrgyz Ministry of Natural Resources (predecessor to the SGA) and OJSC ‘Kutessai Mining’. The aim of this action is to test the legitimacy of Stans’ 20-year mining licence, which was acquired through open auction, as per Kyrgyz government requirements, on December 29, 2009.
In light of this development the Company is undertaking an exhaustive review of all capital expenditures associated with development at Kutessay II. A further review of all non-core operating staff and expenses is currently underway to determine the most prudent methods to protect shareholder capital.
“To appeal this injunction would only delay the main trial process. It is regrettable that a small group of self-interested politicians can hijack the legal system to conduct a malicious prosecution against a law-abiding firm. The court case, and this subsequent court order, are without merit and threaten the livelihoods of our Kyrgyz employees and their families. We are confident we can demonstrate our full compliance with all legislation as set out in Kyrgyz law. All engineering work being conducted by our contractors for feasibility study purposes is ongoing and updates will be provided as these studies are completed,” states Robert Mackay, President and CEO.
David Newton, VP of Mine Operations has resigned his position at the Company. The various elements of the ongoing feasibility study will now be overseen by Stans Energy’s contractor, The Russian Scientific Research Institute of Chemical Technology (VNIIHT), in co-ordination with the Company’s in-house engineering and geology teams.
About VNIIHT OJSC
The Russian Scientific Research Institute of Chemical Technology (VNIIHT) was founded in April 1951. VNIIHT’s objective was to focus on the exploration and development of technologies and raw materials for use in the Soviet nuclear energy sector. VNIIHT technologies continue to be implemented in the main stages of the nuclear fuel cycle. This includes the processing of Uranium and Rare Metal Ores through to the generation of nuclear-pure materials. VNIIHT has sixty years of chemical technology experience, combined with their capabilities of executing the complete cycle of rare earths research, development, and production.
Get our daily investorintel update
About Stans Energy
Stans Energy Corp. is a resource development company focused on advancing Heavy Rare Earth (HRE) properties in areas of Central Asia and Russia. 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 from Kutessay II ores. 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.
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.
InvestorIntel is a trusted source of reliable information at the forefront of emerging markets that brings investment opportunities to discerning investors.