Stans Energy Corp. (“Stans” or the “Company”) is pleased to announce that it has entered into a litigation funding agreement with a subsidiary of the Calunius Litigation Risk Fund 2 LP (the “Funder”). Calunius Capital LLP, is the exclusive investment advisor to the Funder which specializes in funding commercial litigation and arbitration claims. Calunius Capital LLP is authorized and regulated by the Financial Services Authority as an investment adviser.
Under the terms of the litigation funding agreement, the Funder has agreed to assist in the funding of Stans’ legal costs and to provide funding towards ongoing corporate overhead costs, in relation to the international arbitration proceedings against the Republic of Kyrgyzstan (the “Defendant”) on a non-recourse basis.
Stans will continue to have complete control over the conduct of the international arbitration proceedings, insofar as the proceedings relate to the Company’s claims, and continues to have the right to settle with the parties, discontinue proceedings, pursue the proceedings to a final determination and take any action Stans considers appropriate to enforce judgement.
Under the terms of the privileged litigation funding agreement, the Company has given certain warranties and covenants to the Funder. In consideration for the provision of arbitration financing, Stans has agreed to pay to the Funder a portion of any final settlement of the arbitration claim against the Defendant (the “Funder’s Fee”). The Funder’s Fee shall only become payable upon a final settlement of the arbitration claim and the value of the Funder’s Fee is dependent upon a number of variables including the value of any settlement and the length of time taken to reach a settlement. The agreement also provides that the amount of the Funder’s Fee shall not exceed the amount of the aggregate proceeds of the arbitration claim under any circumstances.
Stans is also announcing the resignation of Elena Masters as CFO as of June 8, 2015, due to overwhelming obligations to other major clients. Stans would like to thank Elena for the great job done through 2014 to date, and specifically the completion of 2013 and 2014 Annual Financial Reports as well as her contribution to successful negotiation of the litigation funding transaction. Mr. Boris Aryev will carry on as an Interim CFO until a new CFO is hired.
The TSX Venture Exchange has neither approved nor disapproved the contents of this release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies accepts responsibility for the adequacy or accuracy of this news release..
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.
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.