TORONTO, ON / ACCESSWIRE / November 13, 2014 / Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), ("Stans" or the "Company") announced today that the Government of the Kyrgyz Republic has notified the company that it is moving to revoke its mining licenses for the Kutessay II and Kalesay properties.
"The lack of due process by the Kyrgyz Government is poisoning the business environment in Kyrgyzstan and as such we remain committed to executing the award of the Moscow Chamber of Commerce and Industry," states Rodney Irwin, Interim President and CEO. "Furthermore this irresponsible action by the Kyrgyz Government only opens the door for future litigation and increased liability for the Kyrgyz Republic. The Company's main focus now is to secure the US$ 118 million arbitration award in Canadian courts and to diversify its operations to more business friendly jurisdictions."
This decision by the Licensing Committee of the State Agency for Geology and Mineral Resources (the "SGA") is based on the July 30, 2014, verdict in favor of the General Prosecutors Office (the "GPO") against the SGA. Stans' local subsidiary, Kutisay Mining Ltd., filed an appeal of the July 30, 2014 ruling to the Supreme Court of Kyrgyzstan, and despite the fact that that ruling cannot enter into force until an appeal is heard under Kyrgyz Law, the SGA has decided to revoke the Kutessay II and Kalesay Licences extra judiciously. According to Kyrgyz Law on Subsoil, the July 30, 2014 ruling can't be used as the reason to revoke these licenses. Kutisay Mining Ltd. has filed a claim against the revocation by the SGA in the Inter-district Court of Bishkek which should be heard on December 8, 2014.
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.
We seek safe harbour.
Contact Details
Rodney Irwin
Stans Energy Corp
President & CEO
[email protected]
647-426-1865
David Vinokurov
Stan Energy Corp
VP Corporate Development
[email protected]
647-426-1865
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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SOURCE: Stans Energy Corp.