CANADA'S KHAN RESOURCES MONGOLIAN URANIUM LICENCE REVOKED

Mongolian government lean towards the decision to develop its largest untapped uranium resources in the eastern part of the country through a joint venture with Russians after it annulled license of Canadian firm.

Khan Resources said it received a notice from the Mongolian Nuclear Energy Agency stating that its 58%-owned Mongolian joint venture subsidiary Central Asian Uranium Company’s mining and exploration licenses have been invalidated.

Last July, an inspection team from the State Professional Inspection Agency concluded that Khan Resources have violated Mongolian law in respect of the mining license.

Khan said that it believes their operation was in compliance with all applicable Mongolian laws, including the Nuclear Energy Law. “Khan and its legal counsel intend to vigorously defend its rights and interests, and to pursue all available rights and remedies in the Canadian and Mongolian courts and, if necessary, in international arbitration,” company stated.

Martin Quick, President and CEO of Khan Resources, said: “We view the NEA decision to invalidate the Dornod licenses as without any legitimate or legal foundation and may be politically motivated. The Nuclear Energy Agency’s intention appears to be to invalidate our licenses, as well as potentially those held by other foreign companies operating in the region, with a view to transferring all of the mineral rights and interests in the entire Dornod uranium region to a ‘Dornod Uranium joint venture’ that is purportedly being established between the Russian and Mongolian Governments, with complete disregard to our rights and interests.”