Khan shares fall on Mongolia agency appeal
TORONTO (miningweekly.com) – Mongolia's Nuclear Energy Agency (NEA) will appeal a court decision that invalidated a decision by the agency to invalidate a uranium mining licence held by Khan Resources' 58%-owned Central Asian Uranium Company (CAUC).
Shares in Toronto-based Khan fell 17% after the company made put out a statement on the issue.
In April, both CAUC and Khan's 100%-owned Mongolian subsidiary Khan Mongolia received notices from the NEA, which said that their respective licences had been invalidated as of October 2009, based on unspecified violations of Mongolian law.
CAUC holds the licence for the Dornod uranium project, and Khan Mongolia has an exploration licence for an adjoining property.
Khan challenged the decisions in Mongolian court, and received positive rulings in both cases.
However, the NEA can appeal the court decisions, and still has until August 23 to appeal the Khan Mongolia result.
"We are very disappointed that the NEA has chosen to appeal a very clear and definitive ruling of the court,” Khan CEO Grant Edey said.
“We trust the court will deal with the matter quickly and uphold the ruling in favour of CAUC".
Khan shares fell C$0,06 on Monday morning, to C$0,29 apiece by 11:57 in Toronto.
Shares in Toronto-based Khan fell 17% after the company made put out a statement on the issue.
In April, both CAUC and Khan's 100%-owned Mongolian subsidiary Khan Mongolia received notices from the NEA, which said that their respective licences had been invalidated as of October 2009, based on unspecified violations of Mongolian law.
CAUC holds the licence for the Dornod uranium project, and Khan Mongolia has an exploration licence for an adjoining property.
Khan challenged the decisions in Mongolian court, and received positive rulings in both cases.
However, the NEA can appeal the court decisions, and still has until August 23 to appeal the Khan Mongolia result.
"We are very disappointed that the NEA has chosen to appeal a very clear and definitive ruling of the court,” Khan CEO Grant Edey said.
“We trust the court will deal with the matter quickly and uphold the ruling in favour of CAUC".
Khan shares fell C$0,06 on Monday morning, to C$0,29 apiece by 11:57 in Toronto.
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