Robert Mackay, President and CEO of Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), (“Stans” or the “Company”), is pleased to report that the Company’s lawsuit against a committee in the Jogorku Kenesh (the “Committee”), of which Rep. N. Badykeeva is a member, has been resolved by the Inter-district Court of Bishkek in favor of the Company.
The Inter-district Court has ruled that the Committee’s actions were illegal, and are counter to the Constitution of the Kyrgyz Republic. As a result, the following orders and decisions of the Committee were voided:
- Committee order to the State Geological Agency (SGA) to annul Licence Agreement #3
- Committee order to the State Geological Agency to put to tender Kutessay II
- Committee decision to recommend to the State Geological Agency that Licence Agreement #3 be annulled
Reasons for the decision were outlined in a judgment provided to the Company. The Court ruled that the Committee had committed a number of procedural and substantive errors and violations, including;
- failure to notify the State Geological Agency within a predetermined time period that a investigation was taking place;
- failure to follow proper inspection procedures;
- failure to keep proper records of inspections or minutes of Committee proceedings. In this case, the Committee kept no minutes and thus no minutes could be provided to the court;
- not allowing participation from representatives of Kutisay Mining LLC in relevant Committee meetings;
- acting beyond the scope of its authority by attempting to unlawfully interfere in the executive authority and activity of the Kyrgyz Government and the State Geological Agency.
A 30-day work stoppage, previously announced on September 11, 2012, which was enacted by the previous administration of the State Geological Agency, was also contested in front of the Inter-district Court of Bishkek. Stans Energy Corp is pleased to report that the Inter-district has ruled in favor of the Company; that the work stoppage was in fact illegal, and that the Company assumed all measures for the appropriate fulfillment of obligations as set out in Licence Agreement #3. The Court ruled that the non-fulfillment of specific sections of Licence Agreement #3, which was used as the basis for a work suspension, was not the fault of the Company, but due to the fault of the previous administrations of the State Geological Agency and the lack of action by the State Property Fund.
“Vindication in the Kyrgyz court system is extremely reassuring for both the Company and for the long-term prospects for foreign investment in Kyrgyzstan. A functioning rule of law that can protect investor property rights and counter processes that are not transparent or impartial is absolutely critical to ensure a stable business environment. Stans has always maintained the position that it operates openly and in good faith with all stakeholders, be it government, shareholders, or potential partners. These recent court decisions prove that our meticulous adherence to the highest standards of business practice and reporting is a strategy that will maximize the value for shareholders and local stakeholders in the long term,” states Robert Mackay, President and CEO. “As with any legal system, appeals are par for the course. With the standard 30-day period for appeals having expired today, it is encouraging to see that the new administration of the State Geological Agency is charting a different course than that of the previous administration, by choosing not to appeal the decision of the Inter-District Court. Rep. Badykeeva and the Committee, as is afforded to them under the law of the Kyrgyz Republic, are choosing to appeal the decision against the Committee and continue their personal crusade against the Company. Thanks to our legal advisors – Partner Law Firm, we are confident that further vindication in the courts for Stans Energy will dispel future distractions of this kind.”
Stans Energy has begun a tender process for additional contractors to commence works on various required aspects of a Bankable Feasibility Study. Once all contracts have been finalized, the Company will issue a full status report.
Mr. Mackay goes on to mention “Now that we have overcome these legal hurdles, it is extremely refreshing for the entire team to focus back on fast-tracking Kutessay II into production. As of today there are 128 employees of the Company who are eager and excited to contribute to the long-term viability of the Company and the project. I congratulate them on their work to date and we all look forward to working with our new contractors to further our corporate development goals.”
We seek safe harbour.
President & CEO
Investor Relations, The Buick Group