Энэ 7 хоногт
Mongolian NEA to appeal Khan case verdict Khans shares down 10%
The court’s ruling on July 19 found that the NEA’s purported decision to invalidate the mining license held by Khans joint venture unit, Central Asian Uranium Co (CAUC), was illegal and invalid.
While last month turned in favour of Khan Resources (TSX:KRI) with news of a Mongolian administrative court invalidating the Nuclear Energy Agency`s (NEA) decision to cancel the company`s mining license, today`s news has made the uranium property explorer`s victory bittersweet, as the NEA has now chosen to appeal the court`s verdict. The company`s stock has slid by 10% today as a result, to $0.315.The court"s ruling on July 19 found that the NEA"s purported decision to invalidate the mining license held by Khan`s joint venture unit, Central Asian Uranium Co (CAUC), was illegal and invalid.
CAUC is a joint venture between Khan, the Russian company Priargunsky and the government of Mongolia. Their chief license is for Khan"s Dornod uranium deposit, a former Russian open-pit uranium mine in north eastern Mongolia. It is believed to have resources of 22,000 tonnes.
"We are very disappointed that the NEA has chosen to appeal a very clear and definitive ruling of the court. We trust the court will deal with the matter quickly and uphold the ruling in favour of CAUC," said president and CEO of Khan, Grant Edey.
In April, the NEA cancelled the mining and exploration licenses of two of Khan"s units claiming specific violations, prompting the Canadian company to challenge the decision in Mongolian courts. It is now unclear whether Khan will continue the process of re-registering its licenses for both its units in the country, as stated previously.
The Dornod deposit was coincidentally also the highly sought-after prize of a takeover battle last year for Khan between Russian state uranium miner ARMZ, the world`s fifth largest uranium producer, and the China National Nuclear Corporation (CNCC), China`s official agent seeking offshore uranium sources.
Last December, Khan rejected ARMZ`s $33 million all-cash offer, to receive months later a $51.8 million bid from CNNC. The CNCC allowed the bid to officially expire in May, however, after failing to receive regulatory approval from the Chinese government.
The company said at the time that no reasons were given in the notice and nor were any reasons provided by CNNC or otherwise been made known to Khan as to why NEA refused the transaction.
Khan is engaged in the acquisition, exploration and development of uranium properties. Its current activities are focused on the Dornod area in northeastern Mongolia, the site of a former open-pit uranium mine. Khan holds interests in the Main Dornod Property and in the Additional Dornod Property.
