TORONTO--(BUSINESS WIRE)--Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), (“Stans” or the “Company”) is pleased to report that the Arbitration Court at the Moscow Chamber of Commerce and Industry (the “Court”) has concluded its final hearings in the matter between the Company and the Government of the Republic of Kyrgyzstan. In this matter, the Court has ruled in favour of Stans Energy Corp.
The Court will now prepare a written ruling, which will detail the verdict and the final damage amount. This process may take up to three months. Once Stans will receive the written ruling, the Company will issue a release outlining those details.
In the interim period before the final damage amount is announced, the Company intends to continue negotiating a settlement with the inter-departmental working group of the Kyrgyz Government as previously announced by the Company on February 6th, 2014.
“Stans Energy and its subsidiaries have always conducted operations to the highest standards of international ethical and business practices. This ruling validates our position as open and honest business partners for the Kyrgyz Republic. It is our hope that we can now engage the Government of the Kyrgyzstan in sincere discussions whereby we can resolve all the outstanding issues in Kyrgyzstan and resume development of Kutessay II. We are committed to working with the Kyrgyz authorities to negotiate an amicable solution that will allow the Company to resume work, increase employment opportunities for the communities in which operate and to ultimately benefit all stakeholders involved in the project. I would like to take this opportunity to congratulate our legal team lead by Professor Igor Zenkin, who presented a well-considered and well advocated claim on the Company’s behalf,” states Interim-President and CEO, Rodney Irwin.
On October 30, 2013, Stans Energy Corp. and its subsidiaries filed a claim for arbitration under the Convention for the Protection of Investor’s Rights to which Kyrgyzstan is a signatory. The arbitration hearings are being heard in the Arbitration Court at the Moscow Chamber of Commerce and Industry. The Company claims that certain actions by agencies and/or representatives acting on behalf of the Government of the Republic of Kyrgyzstan were aimed to impede the Company from executing its responsibilities under its licence and have created conditions for termination of the operations of Kutisay Mining LLC, the Company’s wholly owned subsidiary, amounting to expropriation.
The claim seeks $117,853,000 in compensation for losses and damage.
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.