Stans Energy Update on International Arbitration Proceedings
February 6, 2014 (Source: Businesswire) — Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), (“Stans” or the “Company”), announces that an inter-departmental working group has been formed by the Government of Kyrgyzstan in reaction to the Company’s ongoing International Arbitration claim. A stated aim of this working group is to hold negotiations with Stans to reach an out-of-court settlement with the Company.
By order No. 30-R, issued by Prime Minister Satybaldiyev, a working group consisting of the following representatives has been appointed to conduct negotiations with Stans:
S. Sultanov – State Secretary of State Agency on Geology and Mineral Resources
Z. Omurkanov – Head of International Cooperation of the Ministry of Justice
R. Kurumshiev – Head of Subsoil Use Licencing Department, State Agency on Geology and Mineral Resources
Z. Baymanova – State Secretary of the Ministry of Finance
A. Alimbekov – Head of Mining Policy Department, Ministry of Economy
E. Mukanov – Chief Officer of Legal Support Department, State Agency on Geology and Mineral Resources
As of January 31, 2014, the firm of Schonherr Rechstanwalte GmbH was retained by the Government of Kyrgyzstan to represent its interests at the Moscow Chamber of Commerce and Industry, in which the arbitration proceedings are being held. At a hearing on February 6, 2014, it was determined to adjourn the arbitration. A detailed plan for the next scheduled hearings should be released by the Arbitration Court of the Moscow Chamber of Commerce and Industry in the coming week.
“It is encouraging to now see that the Government of Kyrgyzstan, through the Office of the Prime Minister, has decided to commence meaningful negotiations with Stans Energy. This will begin the dialogue we have always hoped to have that will help us to expand our operations in Kyrgyzstan. Stans will, in the meantime, continue to pursue recourse through the arbitration hearings in Moscow in parallel with the upcoming government talks. Stans remains committed to developing Kutessay II, resuming production of rare earth elements and restoring opportunities to the communities in which we operate in Kyrgyzstan. Management is eager to sit down with the government working group and resolve the outstanding disputes so that all stakeholder interests will be secured moving forward,” states Rodney Irwin, Interim CEO and President.
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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 will be heard in the Arbitration Court at the Moscow Chamber of Commerce and Industry. The Company claims that certain actions by agencies and/or representatives acting on behalf of the Government of Kyrgyzstan were aimed to impede the Company from executing its responsibilities under its licence and have created conditions for termination of the operations of Kutisay Mining LLC, the Company’s wholly owned subsidiary amounting to an expropriation.
The claim seeks US$ 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.
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.
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