Kyrgyz Republic Trying to Revoke Stans’ Mining Licenses

- November 13th, 2014

Stans Energy Corp. (TSXV:HRE,OTCQX:HREEF) announced that the Kyrgyz Republic’s government has made a move to revoke its mining licenses for the Kutessay II and Kalesay properties.

Stans Energy Corp. (TSXV:HRE,OTCQX:HREEF) announced that the Kyrgyz Republic’s government has made a move to revoke its mining licenses for the Kutessay II and Kalesay properties.

The company said it will look to start diversifying into more hospitable jurisdictions moving forward.

As quoted in the press release:

This decision by the Licensing Committee of the State Agency for Geology and Mineral Resources (the ‘SGA’) is based on the July 30, 2014, verdict in favor of the General Prosecutors Office (the ‘GPO’) against the SGA. Stans’ local subsidiary, Kutisay Mining Ltd., filed an appeal of the July 30, 2014 ruling to the Supreme Court of Kyrgyzstan, and despite the fact that that ruling cannot enter into force until an appeal is heard under Kyrgyz Law, the SGA has decided to revoke the Kutessay II and Kalesay Licences extra judiciously. According to Kyrgyz Law on Subsoil, the July 30, 2014 ruling can’t be used as the reason to revoke these licenses. Kutisay Mining Ltd. has filed a claim against the revocation by the SGA in the Inter-district Court of Bishkek which should be heard on December 8, 2014.

Rodney Irwin, the company’s interim president and CEO, commented:

The lack of due process by the Kyrgyz Government is poisoning the business environment in Kyrgyzstan and as such we remain committed to executing the award of the Moscow Chamber of Commerce and Industry. Furthermore this irresponsible action by the Kyrgyz Government only opens the door for future litigation and increased liability for the Kyrgyz Republic. The Company’s main focus now is to secure the US$ 118 million arbitration award in Canadian courts and to diversify its operations to more business friendly jurisdictions.

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

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