Stans Energy Corp V.HRE.H

Some thoughts

[Kaliahk]

What is going to happen depends on the value of the mining property - not sure what that may be at present given the RE market and the risks of doing business in Kyrgyristan.  If the property is worth in excess of $50 million, I would expect that the Kyrgyz may get some bids at $10 million or more.  These bidders could be adverse to Stans (i.e. the Chinese).  In that case the winning company will have to pony up for the Kyrgyz cost of defense as it is ongoing.  They may be willing to take this risk and hope the arbitration goes well for the Kyrgyz.  if not it does not go well, they will likely forfeit the mine and let the Kyrgyz pay that bill.  Alternatively or perhaps additionally, the winning bidder as the party responsible for litigation costs and the award may enter into negotiations with Stans to settle the arbitration and to acquire the data that Stans has developed and the processing plant and any other Kyrgyz properties of Stans.  This could be stock or cash or some of both.  This is probably the best case scenario for Stans at this point, and is a smart approach for the Kyrgyz to take.

As for the value of Stans claim, I have no specific knowledge of the measure of damages allowed in cases involving protection of investors rights.  however, I think it will be difficult for Stans to argue for a grater recovery that the amount of thier investment plus interest.  I think this is in the vicinityof $30 million plus interest - maybe $50 million.  If I were to bet, this is the recovery I would think most likely.  Doesn't mean it couldn't be $128 million plus interest or $0.  I haven't seent he terms of the deal withthe litigation funder (anyone know if this has been disclosed?) - but this could easily result in half of that recovery going to pay legal costs.  Given the market cap of about $3.5 million - the market seems to think I am a little overly optimistic.

And yeah Colima, I was influenced by BK on this play as well as a couple of others that did not turn out so well.