Stans Energy Subsidiary Named as Co-Defendant in Kyrgyz Court Action
TORONTO--(BUSINESS WIRE)-- Robert Mackay, President and CEO of Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), ("Stans Energy" or the "Company"), reports that the Kyrgyz State Prosecutor's Office has initiated legal proceedings against the Kyrgyz State Geological and Mineral Resources Agency (SGA) in the Inter-District Court of the City of Bishkek.
The State Prosecutor's Office has put forward an application to lift the three-year statute of limitations to allow them to present to the court their claim of request to nullify the minutes of the December 21, 2009 meeting between the SGA and Open Stock Company (OSC) 'Kutessai Mining' which granted OSC 'Kutessai Mining' mining licenses for the Kutessay II and Kalesay deposits. OSC 'Kutessai Mining' was a 100% state-owned special purpose entity, created to hold mining licenses for the Kutessay II and Kalesay deposits. It was put for an open and previously advertised government auction on December 29, 2009. Stans Energy's local subsidiary, Stans Energy KG, acquired OSC 'Kutessai Mining' on December 29, 2009 through this auction, where the sum of $855,000 USD was paid to the Government, which at the time was double the value that the Kyrgyz authorities had attributed to the property. Stans Energy KG then re-registered OSC 'Kutessai Mining LTD' as it's fully owned subsidiary 'Kutessai Mining LTD'.
'Kutessai Mining LTD' is named as a third party to the proceedings. Stans and its legal representation are of the position that the claim filed by the State Prosecutor's Office is baseless, with no legal merit, and that the company's 100% owned mining licenses for both properties were obtained lawfully, through transparent government auction, on December 29, 2009.
"We have every piece of paperwork filed since we began our business ventures in Kyrgyzstan and there is no doubt in my mind that our legal team will thwart this attempt on our licenses, just as they have successfully done in the past. Our lawyers have always been meticulous in ensuring that all of Stans Energy's business dealings within Kyrgyzstan have adhered to the laws of the country, and this commitment will never change as we work towards bringing the Kutessay II Heavy Rare Earth mine back into production" stated Robert Mackay, President and CEO of the company.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
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.
Stans Energy Corp
Stan Energy Corp
President & CEO
VP Corporate Development
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.
KEYWORDS: Kyrgyzstan Asia Pacific North America Canada
The article Stans Energy Subsidiary Named as Co-Defendant in Kyrgyz Court Action originally appeared on Fool.com.
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