Stans Still Seeking Enforcement of International Arbitration Ruling

- August 5th, 2014

Stans Energy Corp. (TSXV:HRE,OTCQX:HREEF) announced that on July 30, 2014, the Bishkek City Court ruled in favor of the Kyrgyz General Prosecutors Office regarding its claim to Stans’ Kutessay II project.

Stans Energy Corp. (TSXV:HRE,OTCQX:HREEF) announced that on July 30, 2014, the Bishkek City Court ruled in favor of the Kyrgyz General Prosecutors Office regarding its claim to Stans’ Kutessay II project.

As quoted in the press release:

On March 19, 2014, the Inter-District Court of Bishkek found in favour of the GPO and ruled to annul the minutes of the meeting that resulted in the 20-year mining licences for Kutessay II and Kalesai deposits being acquired by Stans through auction in 2009. The Company has the right to appeal to the Kyrgyz Supreme Court to contest this ruling by the Court. The Company also has the option to seek compensation for costs incurred during the acquisition of the Kutessay and Kalesay deposits that were not included in the international arbitration claim filed by the Company at the Moscow Chamber of Commerce and Industry.

In light of a recent proposal submitted by Stans on July 2, 2014 to the Government of the Kyrgyz Republic that provided a framework for the development of Kutessay II, it is disappointing that the Government continues to negotiate in bad faith. On July 9, 2014, as required by standard legal procedure, a voluntary payment request was sent to Prime Minister Otorbaev requesting $118 million, as awarded to the Company by the International Arbitration Court at the Moscow Chamber of Commerce and Industry.

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

This ruling by the Bishkek City Court is evidently the Governments response to our proposal and voluntary payment request. In view of this action by the Government, our legal team is completing the required filings necessary to proceed with the collection process to secure the $118 million awarded by the Arbitration Court.

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

Leave a Reply