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Mineweb reported that an Ontario Superior Court of Justice injunction supporting a US$118-million award obtained by Stans Energy Corp. (TSXV:HRE) in a Moscow court is causing problems for Centerra Gold Inc. (TSX:CG).
Mineweb reported that an Ontario Superior Court of Justice injunction supporting a US$118-million award obtained by Stans Energy Corp. (TSXV:HRE) in a Moscow court is causing problems for Centerra Gold Inc. (TSX:CG).
As quoted in the market news:
In December 2009, Toronto-based Stans Energy … acquired a 20-year mining license for the former Kutessay II heavy rare earths mine from the Kyrgyz Republic. Stans claims the operation is the only facility outside of China to produce all 10 heavy rare earths elements for the former Soviet Union for three decades.
However, the Kyrgyz Republic was believed to have revoked that license in 2012 at the request of the political faction of Ar-Namys of the Kyrgyz parliament with officials announcing they would put Kutessay II up for auction. This prompted Stans Energy to commence international arbitration against the government to reclaim its mining license. Stans Chairman and Interim CEO Rodney Irwin said the company decided to file for arbitration “to have a stick to encourage cooperation from the government because we still want to develop our mine.”
Meanwhile, the Arbitration Court in Moscow gave Stans a $118 million arbitration award which has yet to be paid by the Kyrgyz government, which has repeatedly failed to pay the award.
Stans Energy sought relief from the Ontario Superior Court which issued an injunction prohibiting the Kyrgyz government from selling or transferring 47 million of its 77 million Centerra shares to form the 50:50 Kumtor joint venture with Centerra, Stans Energy would like to use the shares as compensation for the loss of Kutessay II.