Stans Energy (TSX:V.HRE, Stock Forum) and the Kyrgyz government are still going toe-to-toe over the company's rights for the 20-year mining licenses regarding its wholly-owned Kutessay II project, despite a favorable ruling from the International Arbitration Court at the Moscow Chamber of Commerce and Industry which awarded the company $188.0 million.
According to the news release, the Bishkek City Court, on July 30, 204, ruled in favor of the Kyrgyz General Prosecutor's Office (“GPO”) regarding GPO's claim related to Kutessay II project, effectively voiding the minutes from a 2009 meeting which resulted in the 20-year mining licenses for the Kutessay II and Kalesai deposits being awarded to Stans.
The company still has the right to appeal to the Kyrgyz Supreme Court in order to contest this latest ruling and it also has the option to seek compensation for costs incurred during the acquisition of the aforementioned deposits that were not included in the international arbitration claim filed by the company at the Moscow Chamber of Commerce and Industry.
Company interim president and CEO, Rodney Irwin, commented on Kyrgyz Government's continued legal maneuvering, “In light of a recent proposal submitted by Stans on July 2, 2014 to the Government of the Kyrgyz Republic that provided a framework for the development of Kutessay II, it is disappointing that the Government continues to negotiate in bad faith.”
He went on to illustrate, “On July 9, 2014, as required by standard legal procedure, a voluntary payment request was sent to Prime Minister Otorbaev requesting $118 million, as awarded to the Company by the International Arbitration Court at the Moscow Chamber of Commerce and Industry. This ruling by the Bishkek City Court is evidently the Government’s response to our proposal and voluntary payment request.”
He then summed up, “In view of this action by the Government, our legal team is completing the required filings necessary to proceed with the collection process to secure the $118 million awarded by the Arbitration Court.”
Stans was in the news recently when the company announced its annual shareholder meeting in the middle of July.
Shares dropped by the end of trading 19.05% by the end of trading to $0.17 per share.
Currently there are 157.3m outstanding shares with a market cap of $31.4 million.