Stans Energy Updates Status of Management Cease Trade Order
January 10, 2014 (Source: Businesswire) — Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), (“Stans” or the “Company”), announces that further to its application dated November 28, 2013 for a Management Cease Trade Order (MCTO), a temporary MCTO of the Ontario Securities Commission (the Commission) was issued on December 9, 2013. This MCTO prohibits all trading in and all acquisitions of the securities of the Company, by certain insiders, until two days after receipt by the Commission of all the required filings as noted in the Company’s November 28, 2013 press release.
Until the MCTO is lifted, Stans will comply with the alternative information guidelines set out in National Policy 12-203 – Cease Trade Orders for Continuous Disclosure Defaults for issuers who have failed to comply with a specified continuous disclosure requirement within the times prescribed by applicable securities laws. The guidelines, among other things, require the Company to issue bi-weekly default status reports by way of a news release, and one will be forthcoming in the prescribed time frame.
Rodney Irwin, Interim CEO and President, reports that the Company is continuing to work on evaluating potential impairment considerations of both exploration and evaluation costs on mineral properties in Kyrgyzstan and on the Company’s Kashka Rare Earth Processing Facility (“KRP”). Furthermore, the review of corporate records to determine the date from which impairment of assets ought to have been reflected in the Company’s financial statements, continues.
As reported on January 8, 2014, Anna Kuranova, Stans Energy’s CFO, has submitted her resignation. A search for a new CFO has already commenced.
There are no significant new developments since the company’s December 27th press release with respect to arbitration proceedings brought by the Company against the Government of Kyrgyzstan. A hearing is currently scheduled for February 6, 2014. Stans Management continues to expect final resolution of the arbitration proceedings by the end of Q1 2014.
The Company anticipates that it will be in a position to remedy the default by filing the Required Filings by January 28, 2014. The MCTO will be in effect until after the Required Filings are filed.
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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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