KHAN RESOURCES INChttp://www.khanresources.com/
Khan Resources Inc., and its predecessor companies, were involved in the development of the Dornod uranium property in Mongolia since 1995. Khan completed a full Definitive Feasibility Study on the property in the spring of 2009, which demonstrated highly positive economics for the project. However, in January 2009, Mongolia and Russia had announced their intention to form a new Mongolian-Russian joint venture to replace Khan in mining the Dornod property. In July 2009, the Government of Mongolia promulgated its Nuclear Energy law, which among other items, provided the State with 51% of the Dornod property without compensation to prior owners.
Further, in 2010, the Government of Mongolia refused to reissue to Khan the required licenses for the Dornod property which effectively resulted in 100% expropriation of the asset without any compensation. As a result of these actions, Khan launched an international arbitration action against Mongolia for the illegal expropriation of its asset in January, 2011. On March 5, 2015, the international arbitration tribunal rendered an award in favour of Khan of US$80 million plus costs of US$9 million plus interest at LIBOR plus 2% from July 2009 to the date the award is paid. The award aggregated to approximately US$103 million as of the award date. Although the award is due and payable, the Government of Mongolia has been recalcitrant in making payment and enforcement procedures have been initiated.
Grant A. Edey
Khan Resources Inc.
The Exchange Tower
130 King St. W., Suite 1800
416 360 3405