Khan mining licence upheld by Mongolian court; stock soars more than 18 per cent
TORONTO - Stock in Khan Resources Inc. (TSX: KRI.TO) soared more than 18 per cent Wednesday after the Toronto-based uranium miner won another round in its legal battle to renew its Mongolian mining licences.
Khan stock was up seven cents, or 18.18 per cent, at 45.5 cents at midday on the Toronto Stock Exchange on volume of more than one million shares on what was a down day for most miners on the TSX.
Khan said it had received a "favourable written decision of the Mongolian appellate court" regarding an appeal filed by the Mongolian Nuclear Energy Agency against a July 19 decision by a lower court backing the Canadian miner's position.
The July ruling by an administrative court declared that notices issued by the nuclear energy agency invalidating the mining licence held by Khan's 58 per cent owned joint venture subsidiary, Central Asian Uranium Company, "were themselves illegal and invalid."
"The appellate court ruling, while containing some variations, substantially upheld the earlier administrative court ruling," Khan said in a news release Wednesday.
The NEA has a right to appeal the appellate court ruling within 30 days.
Khan also noted that in August, the Capital City Administrative Court rendered a decision, similar to its July ruling, in favour of Khan's 100 per cent owned subsidiary, Khan Mongolia. That decision has not been contested by the NEA.
"We are pleased with the ruling by the appellate court," Khan Resources president and CEO Grant Edey said. "We now trust the NEA will move forward with reregistering our licences under the Mongolian Nuclear Energy Act, or will provide just cause as to why not, all as prescribed by the laws of Mongolia."
In November, 2009, the Company submitted detailed applications for reregistration of the mining and exploration licences as required by the Nuclear Energy Act. To date, the licences have not been reregistered, even though Khan has said it believes it has met all of the reregistration criteria.
Khan is engaged in the acquisition, exploration and development of uranium properties as is currently focused on the Dornod area in northeastern Mongolia.