Khan Resources prepares suit against Mongolia, claiming licences taken illegally
TORONTO - Khan Resources Inc. (TSX:KRI) says it's pursuing legal action to recover what it alleges was "illegal expropriation" of its uranium licences in Mongolia and has hired a Washington, D.C. law firm to handle the case.
Crowell & Moring LLP will start international arbitration proceedings against the Mongolian authorities, pointing to the Mongolian Nuclear Energy Agency in particular, the Toronto-headquartered company said Tuesday.
The dispute revolves around claims the agency has no legal authority to invalidate a mining licence held by Central Asian Uranium Company, a subsidiary of the Canadian firm.
"Khan believes that it has a strong case and intends to seek a substantial damages award that reflects the significant value that Khan has created in the Dornod Uranium Project, as demonstrated by the definitive feasibility study completed in March 2009," the company said in a release.
Khan has previously suggested the nuclear agency may be acting for political reasons in order to transfer all the mineral rights within the Dornod uranium region to a company that would be owned by Mongolia and Russia.
"Khan and its legal counsel intend to vigorously defend its rights and interests, including pursuing all available rights and remedies in Canada, Mongolia and elsewhere, as necessary," the company added.
Khan Resources also announced Martin Quick is retiring as the company's CEO.
Quick will remain as a director of the company, and will be replaced as chief executive officer by Khan director Grant Edey on an interim basis.
The company said Quick originally planned to retire last fall, but agreed to stay on during recent takeover bids, which included a $51.8-million bid from China National Nuclear Corp. that expired after the Chinese company failed to get regulatory approval from its government.
The Canadian Press, June 22, 2010 - 12:45 a.m.
Crowell & Moring LLP will start international arbitration proceedings against the Mongolian authorities, pointing to the Mongolian Nuclear Energy Agency in particular, the Toronto-headquartered company said Tuesday.
The dispute revolves around claims the agency has no legal authority to invalidate a mining licence held by Central Asian Uranium Company, a subsidiary of the Canadian firm.
"Khan believes that it has a strong case and intends to seek a substantial damages award that reflects the significant value that Khan has created in the Dornod Uranium Project, as demonstrated by the definitive feasibility study completed in March 2009," the company said in a release.
Khan has previously suggested the nuclear agency may be acting for political reasons in order to transfer all the mineral rights within the Dornod uranium region to a company that would be owned by Mongolia and Russia.
"Khan and its legal counsel intend to vigorously defend its rights and interests, including pursuing all available rights and remedies in Canada, Mongolia and elsewhere, as necessary," the company added.
Khan Resources also announced Martin Quick is retiring as the company's CEO.
Quick will remain as a director of the company, and will be replaced as chief executive officer by Khan director Grant Edey on an interim basis.
The company said Quick originally planned to retire last fall, but agreed to stay on during recent takeover bids, which included a $51.8-million bid from China National Nuclear Corp. that expired after the Chinese company failed to get regulatory approval from its government.
The Canadian Press, June 22, 2010 - 12:45 a.m.
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