Mongolian court rules in favor of kri yet again, this time on its exploration license
Enclosed please find your Frontier financial markets summary for August 5, 2010 featuring KRI announcement on Mongolian court ruling in its favor on its exploration license.
Frontier Financial Markets Summary
Enclosed please find your Frontier financial markets summary for August 5, 2010 featuring KRI announcement on Mongolian court ruling in its favor on its exploration license .
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MONGOLIAN COURT RULES IN FAVOR OF KRI
YET AGAIN, THIS TIME ON ITS EXPLORATION LICENSE
According to Khan Resources Inc on August 3, 2010, “ the "Company is pleased to
announce that the Mongolian Capital City Administrative Court ruled on August 2, 2010 in favour of its 100%-owned subsidiary, Khan Resources LLC ("Khan Mongolia"), and declared that the decision by the Mongolian Nuclear Energy Agency (the "NEA") to invalidate Khan Mongolia"s exploration license 9282X is itself invalid and illegal. This decision by the Mongolian Court is consistent with their decision of July 19, 2010
As previously announced in April 2010, both CAUC and Khan Mongolia received notices from the NEA purporting to invalidate their licenses relating to the Dornod Uranium Project effective as of October 8, 2009, based on unspecified violations of Mongolian law. Subsequently, each of CAUC and Khan Mongolia filed and pursued separate formal claims in the Court challenging the legal basis for the NEA"s notices. The NEA has the right to appeal the Court"s decisions on CAUC by Aug 9, 2010 and on Khan Mongolia by Aug 23, 2010. Khan continues to believe that it and its Mongolian subsidiaries have always operated in compliance with applicable Mongolian laws. As such, any appeal of the Court decisions by the NEA will be vigorously challenged by Khan through all legally available means.
Mr. Grant Edey, President and CEO of Khan commented, "We are pleased that the Court has ruled in our favour in both cases. Assuming the NEA does not appeal the decisions, we will now continue the process of re-registering our licenses under the Nuclear Energy Law of Mongolia. The Company has always tried to work co-operatively with the Government of Mongolia and its agencies to advance the Dornod Uranium Project. We hope these recent court decisions will allow us to do so."