The Conversation (0)
Stans Energy Corp. (TSXV:HRE,OTCQX:HREEF) reported that on September 10th, the Kyrgyz State Geological Agency formally ordered the Company to suspend the ongoing field work at Kutessay II through to September 30, 2012, due to failure by the company to submit a firm proposal for the gratuitous transfer of a percentage of ownership of ‘Kutisay Mining LLC’, a subsidiary of Stans Energy Corp., to the Kyrgyz Republic State Property Management Fund, by July 31, 2012.
As quoted in the press release:
The decision of the Agency was non-unanimous, but was passed despite the fact that there is no current law requiring Stans to gratuitously transfer any set percentage of its business to the State Property Management Fund. Stans had submitted a non-numerical public/private partnership proposal on July 31st, 2012. (Please refer to Stans’ June 18th, 2012 press release for information regarding the said license and details of the public-private partnership negotiations).
In the interim, Stans Energy remains on track to implement its plan of infrastructure improvements, as they are not affected by the current work stoppage. The Company has been forced to halt its 2012 exploratory drilling program, which had been proceeding ahead of schedule, after completion of nine of the ten planned diamond drill holes.
Stans Energy President and CEORobert Mackay said:
If we can, we will try to resolve this issue as soon as possible outside of the Kyrgyz court system. It is my hope that Stans will be able to negotiate a public/private partnership that will benefit all stakeholders involved, as well as the Government of Kyrgyzstan. I will be flying to Kyrgyzstan this week to join other members of Stans Energy management already in Kyrgyzstan to request a meeting with the Agency, and the State Assets Management Fund, with the hope that we may negotiate a mutually beneficial deal in good faith. I apologize to our shareholders for the delay in this press release, but we received unofficial word of this notice on Friday morning, and we needed to get all the facts from our legal counsel before making a statement.
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