Work Stoppage at Kutessay II Expires
Work Stoppage at Kutessay II Expires
TORONTO--(BUSINESS WIRE)-- Robert Mackay, President and CEO of Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), ("Stans" or the "Company"), reports that, effective as of September 30th, the order from the previous administration of the Kyrgyz State Geological Agency (SGA), to suspend the ongoing field work at Kutessay II through to September 30, 2012, has expired, allowing the company to resume work at its 100% owned heavy rare earth mine, Kutessay II. Please refer to Stans Energy's press release, dated September 11, 2012, for details on the cited reasons for the work stoppage.
Stans Energy's Kyrgyz corporate legal team, led by Mr. Temerbek Kenenbaev, and Ms. Mirgul Smanalieva of Partners Law Firm elaborate, "The Law of the Kyrgyz Republic 'On Mining'envisages the possibility of suspension of the licence for the right on use of subsoil for a term of three months based on specific cases. However, the licence of Kutisay Mining LLC was suspended for a one month term by the State Geological Agency and Mineral Resources without probable ground. When the Commission on licensing suspended the licence of Kutisay Mining LLC, the Commission did not establish, nor did it provide, any demands regarding the Company. That is why according to the law, in connection with the expiration of the one month term of suspension of the licence of Kutisay Mining LLC, the company's term of licence is in full effect from October 1, 2012 through to the end of 2029."
On September 25 2012, a meeting was held in the Ministry of the Economy regarding the interference of secondary players in the mining sector. In his address to those assembled, Prime Minister Zhantoro Satybaldiev stressed the importance of allowing the regulatory system to operate openly and to ensure that the due process of law is fully afforded to foreign investors, "Investors must work within the law. Do not try to solve their problems with a third party, please contact the relevant state agency. We will take measures to get rid of corruption in the industry"
Temir Sariev, the Economic Minister of Kyrgyzstan, further outlined some of the challenges facing the sector and solutions that needed to be implemented to secure future investment, "Our State does not have the necessary financial and technical resources for the development of deposits and we have, so far, no such specialists. Development of the mining industry of our country at this stage is only possible by attracting investment. And the investors will come to our country, when they will be confident in the safety of their financial investments." He went on further to state, "We need to have as many enterprises in development, which will eventually reduce the influence of the Kumtor project on our economy. The Government knows about the problems of the mining industry and is already taking specific steps and will continue to consistently and systematically work in this direction."
The new administration of the State Geological Agency, now led by Mr. I. Chunuev, has the mandate to implement these reforms under the new mining laws dated September 17th, 2012. These improvements adhere to the mutual vision of both the President and the new Prime Minister of Kyrgyzstan. Under the country's new Mining Act, there is no mention of any mandatory gratuitous transfer of ownership to the State Property Fund, or any other public administration. Stans Energy is still open, and ready to negotiate deal with the government in order to help Kutessay II into early production.
Robert Mackay said, "Based on various meetings over the past two weeks, I am encouraged to see that Kyrgyzstan is steadily improving its democratic systems, especially in regards to its methods of dealing with foreign investors. The most important aspect of any parliamentary democracy is the rule of law. Stans Energy has, and always will, meticulously conduct the company's business in such a manner that undeniably satisfies the rule of law within each jurisdiction that it operates. "
As part of Stans Energy's ongoing community outreach in support of Kyrgyz social programs, the Board of Directors has approved a yearly allocation 4,000,000 KG Soms ($84,500 CAD approx.) in accordance with guidelines contained in the new mining legislation. These funds will be spent in both of the local communities in which Stans Energy, and its subsidiaries, operate; at the mine site in Aktyuz and in Orlovka, where Kashka Rare Earth Processing (KRP) is located. Stans Energy will be setting up a formal committee to oversee the implementation of this initiative. Priorities will be given to health and education programs that will empower the country's youth, provide training and employment for those who are able and finally, to provide social assistance to the elderly.
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.
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.
Contact Details
Stans Energy Corp
Robert Mackay, 647-426-1865
President & CEO
robert@stansenergy.com
or
The Buick Group
Jonathan Buick, 416-915-0915
jbuick@buickgroup.com
KEYWORDS: Kyrgyzstan Asia Pacific North America Canada
INDUSTRY KEYWORDS:
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