Stans Energy (TSX:V.HRE, Stock Forum) has been going toe-to-toe with the Kyrgyz Republic after the State Agency for Geology and Mineral Resources of Kyrgyzstan repeated ignored the company's attempts to extend its Aktyuz exploration license and after a string of injuctions, Inter-district Court of Bishek rulings, it seems that international arbitration has begun to show positive results for the company.
According to yesterday's announcement, the Arbitration Court at the Moscow Chamber of Commerce and Industry handed down a final binding ruling in the matter, entitling the company to enforcement of the Tribunal Judgement pursuant to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Affairs (1958).
In the ruling, the tribunal dismissed the Government of Kyrgyz Republic's motion to postpone dispute resolution until the claim is considered by the local Moscow Arbitration Court on the jurisdiction of the tribunal.
The tribunal also ordered the Goverment of the Kyrgyz Republic to pay Stans Energy US$117.7 million owning under the company's claim as well as US$158,974 for arbitration fees and US$308,142 for the company's legal fees and expenses, totaling an approximate US$118.2 million.
The attempt of the Kyrgyz government to have the Economic Court of the Commonwealth of Independent States (CIS) testing whether the Kyrgyz Republic was subject to the aformentioned International Arbitration was reduced to an advisory ruling which is not binding for the tribunal or courts outside of the CIS.
The company was quoted in the statement, “Stans Energy has always conducted business to the highest ethical standards. This ruling validates the position taken by the Company.”
It went on to note, “The Government of the Kyrgyz Republic now has an opportunity to foster a positive investment climate in the country and to match its actions to the message that it promotes around the world. Stans Energy is open to continuing dialogue and negotiations to resolve the situation surrounding Kutessay II.”
Then it summed up, “Now that the conclusion to the legal proceedings is in place, the parameters to an amicable solution are clearly defined. The Company is consulting with its international legal teams to determine on how to best proceed.”
Stans Energy was in the news recently when the company announced the approval for its Kyzyluraan license five days ago.
Shares rocketed 50.00% on the news to $0.21 per share.
Currently there are 157.3m outstanding shares with a market cap of $33.0 million.