2013-09-16 19:47:11 -
Toronto, Ontario CANADA, September 16, 2013 /FSC/ - Stans Energy Corp"Stans Energy" or the "Company (TSX-V: HRE, OTCQX: HREEF), is pleased to report that the Bishkek City Court has ruled against a Chinese company which claimed ownership of the mining licence for Kutessay II. Baotou Hongbo Technology Company LTD (Baotau), claimed that it was the legal holder of the mining licence for Kutessay II, that this licence was taken away illegally and without notification. The Bishkek City Court found that Baotau has no valid claims against the licence for Kutessay II, thereby overturning an earlier ruling by the Inter-district Court of Bishkek.
Baotau HongboTechnology Company LTD brought suit against the State Agency for Geology and Mineral Resources of the Kyrgyz
Republic with the intention to reclaim licence rights to Kutessay II. The Inter-district Court of Bishkek ruled in favour of Baotou Technology Company LTD, overlooking significant evidence and ignoring several substantive procedural issues. An immediate appeal was filed to the Bishkek City Court by Kutisay Mining LLC and the State Agency for Geology and Mineral Resources of Kyrgyz Republic.
The Bishkek City Court overruled the lower court ruling for several reasons
- Baotau had no legal basis to petition the courts as it did not acquire the original licence holder, Central Asia Metals Group, until 2013.
- A letter from Baotau to the Kyrgyz government indicated it knew that Central Asia Metals Group licence had been revoked and thus this was the basis for the termination of proceeding under the statute of limitations
- The court found that Central Asia Metals Group failed to comply with its licence agreements from 2008 and it knew by 2010 its licence had been revoked
- Finally, the City Court concluded that the original trial gravely violated substantive and procedural law that led to an unlawful and unjustified decision, which the City Court has nullified.
This decision is final and binding however Baotau Hongbo Technology Company LTD can file an appeal to the Supreme Court within the period of one year. This appeal may only be filed for procedural issues pertaining to this most recent trial at the Bishkek City Court.
The State Prosecutors Office of the Kyrgyz Republic's court action to invalidate the license issuance for the development of Kutessay II for Kutisay Mining LLC is still before the courts. Stans Energy hopes to be able to provide an update within this quarter on the status of the case.
About Stans Energy
Stans Energy Corp. is a resource development company focused on advancing Heavy Rare Earth (HRE) properties in areas of Central Asia and Russia. In December 2009, Stans acquired a 20-year mining license for the past-producing Kutessay II rare earth mine from the Kyrgyz Republic. On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Processing Plant (KRP) the same plant that previously refined REEs from Kutessay II ores. The KRP was the only hard rock plant to produce all rare earth elements outside of China, producing 120 different metals, alloys, and oxides. For over 30 years, Kutessay II produced 80% of the rare earth metals for the Former Soviet Union.
We seek safe harbour.
Stans Energy Corp
Interim President & CEO
Stan Energy Corp
VP Corporate Development
FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, use of proceeds from the Offering, the completion of the Offering, the continued advancement of the company's general business development, research development and the company's development of mineral exploration projects. When used in this press release , the words "will", "shall", "anticipate", "believe", "estimate", "expect", "intent", "may", "project", "plan", "should" and similar expressions may identify forward-looking statements. Although Stans Energy Corp. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.
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Source: Stans Energy Corp. (TSX-V: HRE) www.stansenergy.com
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