Khan Mongolia Court Case Postponed
TORONTO, ONTARIO, Jul 22, 2010 (MARKETWIRE via COMTEX) -- Khan Resources Inc. /quotes/comstock/11t!e:kri (CA:KRI 0.34, -0.02, -4.29%) ("Khan") announced today that the Mongolian Capital City Administrative Court has postponed the hearing of a case brought by its 100%-owned subsidiary, Khan Resources LLC ("Khan Mongolia") which challenges the legal basis of a notice by the Mongolian Nuclear Energy Agency (the "NEA") to invalidate Khan Mongolia's exploration license 9282X.
The new date for the hearing has been set for August 2, 2010. The request for postponement was made by the NEA to allow them to change their legal representative and constitutes the second time the NEA has asked for a postponement of the hearings. On July 19, 2010, the Court did rule in favour of Khan's 58% owned joint venture subsidiary, Central Asian Uranium Company, LLC ("CAUC"), that a similar decision by the NEA to invalidate CAUC's mining license was itself invalid and illegal. The NEA has the right to appeal the Court's decision on CAUC's claim within two weeks of the date of the decision. (See Khan Press Release 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, allegedly based on unspecified violations of Mongolian law. Subsequently, each of CAUC and Khan Mongolia filed and has since been pursuing separate formal claims in the Court challenging the legal basis for the NEA's notices asserting, among other things, that the NEA had no legal authority to make a decision to invalidate the licenses and that the NEA's purported decision to do so violated the provisions of Mongolian law and was, therefore, invalid.
Mr. Grant Edey, President and CEO of Khan commented, "We are disappointed in the NEA's request to again postpone the court case. We were hopeful that a favourable decision for Khan Mongolia, coupled with Monday's favourable decision for CAUC, would allow us to move forward on a co-operative basis with the Government of Mongolia and its agencies to renew our licenses and continue the development of the Dornod Uranium Project".
Khan continues to believe that it and its Mongolian subsidiaries have always operated in compliance with applicable Mongolian laws. An appeal of the Court decision on CAUC by the NEA will be vigorously challenged by Khan through all legally available means.
Khan Resources Inc. /quotes/comstock/11t!e:kri (CA:KRI 0.34, -0.02, -4.29%) is a Canadian company engaged in the acquisition, exploration and development of uranium properties. Its current activities are focused on the Dornod area in north-eastern Mongolia, the site of a former open-pit uranium mine. Khan holds interests in the Main Dornod Property and in the Additional Dornod Property. Khan's website is www.khanresources.com.
Forward-Looking Statements and Information
This press release may contain forward-looking statements and forward-looking information, which are subject to certain risks, uncertainties and assumptions. Forward-looking statements and information are characterized by words such as "will", "plan", "expect", "project", "intend", "believe", "anticipate", "forecast", "schedule", "estimate" and similar expressions, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements and information are not historical facts and are based upon a number of estimates and assumptions and are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors, including the impact of international, Mongolian and Canadian laws, trade agreements and regulatory requirements on Khan's business, properties, licenses, operations and capital structure, Khan's ability to re-instate or re-register the Dornod uranium project licenses, regulatory uncertainty and obtaining governmental and regulatory approvals, legislative, political, social, regulatory and economic developments or changes in jurisdictions in which Khan carries on business, the nature and outcome of pending and future litigation, arbitration and other legal proceedings, the speculative nature of exploration and development, risks involved in the exploration, development and mining business, changes in market conditions, changes or disruptions in the securities markets and market fluctuations in prices for Khan securities, the existence of third parties interested in purchasing some or all of the common shares or Khan's assets, the method of funding and availability of any potential alternative strategic transactions involving Khan or its assets, including those transactions that may produce strategic value to shareholders, the need to obtain, maintain and/or re-register licenses and permits and comply with national and international laws, regulations, treaties or other similar requirements, and uncertainty in the estimation of mineral reserves and resources. In addition, a number of other factors could cause actual results to differ materially from the results discussed in such statements and information, and there is no assurance that actual results will be consistent with them. For further details, reference is made to the risk factors discussed or referred to in Khan's annual and interim management's discussion and analyses and Annual Information Form on file with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Such forward-looking statements and information are made or given as at the date of this news release, and Khan assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law. Contacts:
Khan Resources Inc.
Grant Edey
President & CEO
416.360.3405
gedey@rogers.com
The Buick Group
Jonathan Buick
416.915.0915, Ext. 302 or Toll Free: 1.877.748.0914
jbuick@buickgroup.com
SOURCE: Khan Resources Inc. mailto:gedey@rogers.com
mailto:jbuick@buickgroup.com
Copyright 2010 Marketwire, Inc., All rights reserved.
The new date for the hearing has been set for August 2, 2010. The request for postponement was made by the NEA to allow them to change their legal representative and constitutes the second time the NEA has asked for a postponement of the hearings. On July 19, 2010, the Court did rule in favour of Khan's 58% owned joint venture subsidiary, Central Asian Uranium Company, LLC ("CAUC"), that a similar decision by the NEA to invalidate CAUC's mining license was itself invalid and illegal. The NEA has the right to appeal the Court's decision on CAUC's claim within two weeks of the date of the decision. (See Khan Press Release 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, allegedly based on unspecified violations of Mongolian law. Subsequently, each of CAUC and Khan Mongolia filed and has since been pursuing separate formal claims in the Court challenging the legal basis for the NEA's notices asserting, among other things, that the NEA had no legal authority to make a decision to invalidate the licenses and that the NEA's purported decision to do so violated the provisions of Mongolian law and was, therefore, invalid.
Mr. Grant Edey, President and CEO of Khan commented, "We are disappointed in the NEA's request to again postpone the court case. We were hopeful that a favourable decision for Khan Mongolia, coupled with Monday's favourable decision for CAUC, would allow us to move forward on a co-operative basis with the Government of Mongolia and its agencies to renew our licenses and continue the development of the Dornod Uranium Project".
Khan continues to believe that it and its Mongolian subsidiaries have always operated in compliance with applicable Mongolian laws. An appeal of the Court decision on CAUC by the NEA will be vigorously challenged by Khan through all legally available means.
Khan Resources Inc. /quotes/comstock/11t!e:kri (CA:KRI 0.34, -0.02, -4.29%) is a Canadian company engaged in the acquisition, exploration and development of uranium properties. Its current activities are focused on the Dornod area in north-eastern Mongolia, the site of a former open-pit uranium mine. Khan holds interests in the Main Dornod Property and in the Additional Dornod Property. Khan's website is www.khanresources.com.
Forward-Looking Statements and Information
This press release may contain forward-looking statements and forward-looking information, which are subject to certain risks, uncertainties and assumptions. Forward-looking statements and information are characterized by words such as "will", "plan", "expect", "project", "intend", "believe", "anticipate", "forecast", "schedule", "estimate" and similar expressions, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements and information are not historical facts and are based upon a number of estimates and assumptions and are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors, including the impact of international, Mongolian and Canadian laws, trade agreements and regulatory requirements on Khan's business, properties, licenses, operations and capital structure, Khan's ability to re-instate or re-register the Dornod uranium project licenses, regulatory uncertainty and obtaining governmental and regulatory approvals, legislative, political, social, regulatory and economic developments or changes in jurisdictions in which Khan carries on business, the nature and outcome of pending and future litigation, arbitration and other legal proceedings, the speculative nature of exploration and development, risks involved in the exploration, development and mining business, changes in market conditions, changes or disruptions in the securities markets and market fluctuations in prices for Khan securities, the existence of third parties interested in purchasing some or all of the common shares or Khan's assets, the method of funding and availability of any potential alternative strategic transactions involving Khan or its assets, including those transactions that may produce strategic value to shareholders, the need to obtain, maintain and/or re-register licenses and permits and comply with national and international laws, regulations, treaties or other similar requirements, and uncertainty in the estimation of mineral reserves and resources. In addition, a number of other factors could cause actual results to differ materially from the results discussed in such statements and information, and there is no assurance that actual results will be consistent with them. For further details, reference is made to the risk factors discussed or referred to in Khan's annual and interim management's discussion and analyses and Annual Information Form on file with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Such forward-looking statements and information are made or given as at the date of this news release, and Khan assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law. Contacts:
Khan Resources Inc.
Grant Edey
President & CEO
416.360.3405
gedey@rogers.com
The Buick Group
Jonathan Buick
416.915.0915, Ext. 302 or Toll Free: 1.877.748.0914
jbuick@buickgroup.com
SOURCE: Khan Resources Inc. mailto:gedey@rogers.com
mailto:jbuick@buickgroup.com
Copyright 2010 Marketwire, Inc., All rights reserved.
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