Stans Starts New Arbitration Proceeding Against Kyrgyz Republic

Stans Energy Corp. (TSXV:HRE,OTCQX:HREEF) announced that it’s started a new arbitration proceeding against the Kyrgyz Republic under UNCITRAL Arbitration Rules.

As quoted in the press release:

Stans alleges that the Republic unlawfully expropriated its Kutessay II mining licence. Stans continues to seek the recognition and enforcement of its US$118 million award from the International Arbitrage Tribunal of the Moscow Chamber of Commerce & Industry (MCCI) at the Ontario Superior Court of Justice, which remains scheduled for June 29, 2015.

In the meantime, the Mareva injunction, freezing approximately 47 million shares of Centerra Gold Inc., remains in place in Canada. Kyrgyzaltyn (‘KJSC’), the beneficial owner of the Centerra Gold shares, will be seeking to set aside the Mareva injunction at a previously scheduled May 15, 2015, appeal. KJSC also intends to move, based on the Moscow Arbitrazh Court’s April 29th decision, to set aside the Mareva injunction mentioned above on June 29, 2015.

Rodney Irwin, interim president and CEO of Stans, commented:

As part of our ongoing strategy to ensure collection of damages awarded by the MCCI, Stans has initiated a secondary arbitration claim against the Kyrgyz Republic. It remains our intention to enforce the MCCI award and should we have to proceed with the new arbitration process, we will work with internationally accredited valuators to quantify our losses, which we estimate are now significantly higher than the US$118 million awarded by the MCCI arbitral tribunal.

Click here to rad the full Stans Energy Corp. (TSXV:HRE,OTCQX:HREEF) press release.