Stans Energy (TSXV:HRE), the rare earth company advancing the Kutessay II rare earth mine in the Krygyz Republic, last week updated the status of its management cease trade order (MCTO). The Ontario Securities Commission imposed the MCTO on November 29 after Stans Energy failed to file its interim condensed consolidated financial statements and management discussion and analysis for the three and nine months period ended September 30, 2013.
As quoted in the press release:
Rodney Irwin, Interim CEO and President, reports that a technical team has been appointed in Kyrgyzstan to continue working on impairment considerations of both exploration and evaluation costs on mineral properties in the country and on the Company’s Kashka Rare Earth Processing Facility (“KRP”). Furthermore a review of records has commenced to determine the date from which impairment of assets ought to have been reflected in the Company’s financial statements.
On December 13, 2013 a hearing was held in the arbitration proceedings brought by the Company against the Government of Kyrgyzstan. An adjournment was issued to provide more preparation time for the Government of Kyrgyzstan to present their defence. An update on the timetable for the next hearing will be provided in the once the date becomes available. Stans Management continues to expect final resolution of the arbitration proceedings by the end of Q1 2014.
The Company anticipates that it will be in a position to remedy the default by filing the Required Filings by January 28, 2014. The MCTO will be in effect until after the Required Filings are filed.