$HREEF Stans Receives Preliminary Legal Due Diligence Report on Pervomayskiy Lithium Project and Provides General Corporate Update
Source: FSCwire
Stans Receives Preliminary Legal Due Diligence Report on Pervomayskiy Lithium Project and Provides General Corporate Update
Toronto, Ontario (FSCwire) - Stans Energy Corp. (TSX-V: HRE, OTC: HREEF), ("Stans" or the "Company") is pleased to announce it has received from the Moscow office of Norton Rose Fulbright (“NRFM”) a preliminary Legal Due Diligence Report (“Report”) on assets of Stans’ partner LLC “Pervomayskiy GOK” (“PGOK”).
The Report addresses several key issues, in particular:
1. Ownership of the Mill (“Mill”) and Lithium mineralization stockpiles (“Stockpiles” and together with Mill – “Assets)”.
2. Rights of PGOK to land plots beneath the Mill.
3. Rights of PGOK to land plots beneath the Stockpiles.
The Report generally confirms the fact of: (i) registration of the Mill in the name of PGOK and (ii) acquisition of the Stockpiles by PGOK on 24 June 2016 and identifies, inter alia, certain land registration issues that should be resolved. PGOK is undertaking the necessary actions to address these issues, namely: complete proper registration procedures for the land parcels comprising Mill territory and conclude municipal leasing agreements for land plots beneath the Stockpiles. There remain certain legal matters to satisfy Stans’ legal due diligence requirements related to the title to the Assets
While the legal due diligence is being completed, Stans and PGOK are finalizing the terms of a Binding Memorandum of Understanding (“BMOU”) further to the non-binding MOU announced by the Company on August 26, 2016. Once legal due diligence is completed to the Company’s satisfaction, a geological and technical assessment will be undertaken in order to produce an NI 43-101 compliant preliminary economic assessment (“PEA”) on the Project.
“Given the size of the Property under due diligence review, the amount of work done and timeframe of this undertaking accomplished by the NRFM and PGOK teams are exceptional. The result of this effort is a formidable package of legal documents pertaining to PGOK ownership of the Assets and registration documentation of the properties and land relevant to the Assets. We can now proceed with the final stage of the legal due diligence, geological and technology due diligence and NI 43-101 compliant TEA of the Project” states Mr. Rodney Irwin, CEO and President.
STANS ONGOING FINANCING
Stans announces amended closing terms to its previously announced non-brokered private placement financing. (See Press Releases dated February 13, 2017 and January 10, 2017. The Company expects to close the financing on or about April 27, 2017.
The private placement of $300,000 (the “Offering Amount”) consisting of up to 6,000,000 units at a price of $0.05 per Unit. Each Unit will consist of one common share in the capital of the Company and one share purchase warrant (each whole warrant a “Warrant”). Each Warrant will be exercisable to acquire one additional common share of the Company for a period of 60 months at a price of $0.06 per common share.
Stans intends to use the gross proceeds from the Offering to complete the funding of the Company’s due diligence on the Pervomayskiy Lithium Mineralization Stockpile and Zaibaikalsky Mill. Proceeds will not be used to pay management fees, nor is it proposed to make payments to any related parties.
The Offering is open to all accredited investors and financial institutions, subject to certain limitations. Any existing shareholder interested in participating in the Offering should contact the Company in accordance with the contact information set forth below. The Company may pay registrants a cash commission of 5% of the gross proceeds of this Offering in respect of investors solicited or introduced by such registrants. Registrants will also be entitled to receive warrants to purchase that number of common shares of the Company as equals 5% of the total offering subscribed by investors solicited or introduced by such registrants, at an exercise price of $0.06 per share, for a term of 60 months.
STOCK OPTIONS GRANT
The company also reports that it is granting an aggregate of 9,100,000 stock options. Each stock option entitles the holder to purchase one common share of the Company for $0.06 per share until March 7, 2022. The Share Options shall vest, in six (6) equal installments over a period of 18 months, with the first installment vesting on June 7, 2017 and the remaining Options vesting upon 6 months, 9 months, and 1 year, 15 months and 18 months after the date of grant.
The option grant was approved by the board of directors on March 6, 2017.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Stans Energy
Stans Energy Corp. is a resource development company focused on advancing rare and specialty metals properties and processing technologies. Stans is now transitioning into a supplier of materials and technologies that will assist in satisfying the future energy supply, storage and transmission needs of the world. Previously, the Company acquired, among other things, the right to mine the past producing rare earth mine, Kutessay II, in the Kyrgyz Republic. Due to the expropriation actions taken by the Government of the Kyrgyz Republic, the Company is undertaking international arbitration litigation to protect the Company’s rights and recover damages estimated at over US$210,000,000, caused by the Republic.
We seek safe harbour.
Contact Details
Rodney Irwin
David Vinokurov
Stans Energy Corp
Stan Energy Corp
Interim President & CEO
VP Corporate Development
rodney@stansenergy.com
david@stansenergy.com
647-426-1865
647-426-1865
FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, use of proceeds from the Offering, the completion of the Offering, the continued advancement of the company's general business development, research development and the company's development of mineral exploration projects. When used in this press release, the words “will”, “shall”, "anticipate", "believe", "estimate", "expect", "intent", "may", "project", "plan", "should" and similar expressions may identify forward-looking statements. Although Stans Energy Corp. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/stans03272017.pdf
Source: Stans Energy Corp. (TSX Venture:HRE, OTCQB:HREEF)
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