Stans Energy Corp. (TSX-V: HRE, OTC Pink: HREEF), (“Stans” or the “Company”) is pleased to announce that it has closed the first tranche of its non-brokered private placement (the “Placement”).
As announced on October 4, 2016, the Placement comprised an offering for up to $600,000 consisting of up to 12,000,000 units at a price of $0.05 per Unit. Each Unit consisted of one common share in the capital of the Company and one share purchase warrant (each whole warrant a “Warrant”). Each Warrant will be exercisable to acquire one additional common share of the Company for a period of 60 months at a price of $0.06 per common share.
6,050,000 common shares for gross proceeds of $302,500.00 were issued in this placement. Finders Fees of $2,000 were paid to Cannacord Gennuity. The Finders Fee represented 5% of the gross proceeds collected by Cannacord Gennuity with an allotment for 40,000 finders warrants which represented 5% of the shares issued to Cannacord Genuity clients who participated in Placement. The Finders’ Warrant are exercisable to acquire one common share of the Company at a price of $0.06 commencing on November 10, 2016 for a period of 60 months.
Combined Insider participation in the Placement totalled $45,000. Stans intends to use the gross proceeds from the Offering to fund the legal and technical due diligence for the Pervomayskiy Lithium Mineralization Stockpile (the “Stockpile”) and Zaibaikalsky Mill (the “Mill”) and associated infrastructure.
AMC Consultants have been retained by the Company to conduct geological confirmation work on the Stockpile with a focus on producing an NI 43-101 compliant resource. Furthermore an engineering evaluation on the Mill will be conducted with the eventual intent to produce an NI 43-101 compliant Preliminary Economic Assessment for the production of lithium carbonate from the Stockpile.
Norton Rose Fulbright has also been retained by Stans to assist with the structure and oversight of a purchase option agreement for the Stockpile and Mill. This legal due diligence will be conducted from their Moscow offices in conjunction with Stans’ Moscow based team.
The Company also reports that COO, Boris Aryev, has been issued 200,000 shares to partially settle debts owed from salary arrears dating from April 2016 through July 2016.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Closing of the Offering will be subject to certain closing conditions, including the approval of the Toronto Stock Exchange.
About Stans Energy
Stans Energy Corp. is a resource development company focused on advancing rare earth and specialty metals properties in areas of Central Asia and Russia. Stans acquired the past producing rare earth mine, Kutessay II, in the Kyrgyz Republic in 2009. Since that time the Government of the Republic of Kyrgyzstan took expropriatory actions against the Company’s interests in that country, Subsequently Stans Energy applied to international arbitration to resolve the conflict. On June 30, 2014, Stans Energy was awarded US$118 Million by the Arbitration Tribunal at the Moscow Chamber of Commerce and Industry. On October 24, Stans Energy arrested 47 million shares of Centerra Gold (TSX: CG) as security in this matter. This security allows the Company to pursue the recognition of its arbitral award against the Kyrgyz Republic in the Canadian court system. Stans is now seeking recognition by the Ontario Court of Justice to collect US$ 118 Million worth of Centerra Gold shares.
We seek safe harbour.
Interim President & CEO
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.