Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), (“Stans” or the
“Company”) has been informed that the Bishkek City Court (the “Court”)
on July 30, 2014 has ruled in favour of the Kyrgyz General Prosecutor’s
Office (“GPO”) with respect to its claim regarding Stans’ wholly owned
Kutessay II Project.
This administrative case was filed on March 26, 2013 against the State
Agency on Geology and Mineral Resources under the Government of the
Kyrgyz Republic (“SGA”) to annul the December 21, 2009 Minutes of
Negotiations (registration No. 1736-H-09) between the SGA and public
company JSC Kutisay Mining (100% owned by the Government of KR). On
March 19, 2014, the Inter-District Court of Bishkek found in favour of
the GPO and ruled to annul the minutes of the meeting that resulted in
the 20-year mining licences for Kutessay II and Kalesai deposits being
acquired by Stans through auction in 2009.
The Company has the right to appeal to the Kyrgyz Supreme Court to
contest this ruling by the Court. The Company also has the option to
seek compensation for costs incurred during the acquisition of the
Kutessay and Kalesay deposits that were not included in the
international arbitration claim filed by the Company at the Moscow
Chamber of Commerce and Industry.
“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. 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. 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,” stated Rodney
Irwin, Interim President and CEO.
English and Russian versions of the recent rulings in favour of the
Company from both the International Arbitration Court at the Moscow
Chamber of Commerce and Industry and the Moscow Arbitration Court are
now available for review at www.stansenergy.com/investors
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.
We seek safe harbour.
Contact Details Rodney Irwin Stans Energy Corp Interim
- President & CEO 647-426-1865
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David Vinokurov Stans Energy Corp VP Corporate
Development 647-426-1865
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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.
Copyright Business Wire 2014