InvestorsHub Logo
Followers 20
Posts 1031
Boards Moderated 0
Alias Born 10/17/2006

Re: None

Friday, 07/04/2014 1:40:38 AM

Friday, July 04, 2014 1:40:38 AM

Post# of 453
Go to http://www.stansenergy.com/ check out the Corporate Presentation. See if you agree with me.

Stans Energy is a mining company focused on minerals that contain rare metals used for clean energy technology. Other than that aspect of the name, they have nothing to do with oil, gas, or producing energy.

The open pit mine and processing complex are comparable to a Lynas or Molycorp project. Mining start-ups typically face having to try to raise hundreds of millions to design and build the mine and mill/processing factory, and hundreds of millions more to build infrastructure there are no roads, rail or electric power. In our case, it's already it's all there.

What's really cool is that it's not just a mill - it is also a REFINERY.

Kutessay II Facts

Former producing Rare Earth Element ( REE) open-pit mine

Percentage of HREEs approximately 46%

Contains all 15 REEs and formerly produced every REE at purities up to 99.99%

Kutessay II concentrate was refined into 120 different REE compounds

30 years of proven metallurgy, with approximately 65% recovery

Previously produced 80% of the former Soviet Union’s REEs from 1960-1991

Good infrastructure, rail line 43 km away, electrical power on site, and the mine is located 140 km by paved road from Kyrgyzstan’s capital city of Bishkek

Abundance of qualified labour living in the area

Stans Energy owns 100% of the Processing Complex previously used to create final oxides metals and alloys from Kutessay II concentrate

• 100% ownership of former Soviet-era mine
• Produced 80% of FSU’s REE needs
• March 2011: Pit-contained mineral resources

– Measured + Indicated: 45,650 tonnes of contained TREO
– Inferred: 3,560 tonnes of contained TREO

= Just counting measured and indicated,
approx 102 million pounds of REO (Rare Earth Oxide)
@ $20 lb = approx $1 billion

Let's say, 50% to be conservative = $500 million

$500 million / 175 million fully diluted outstanding shares = $2.85 book value per share based just on ore waiting to be scooped up from the already built open pit mine. ( not counting the factory and the other adjacent mineral assets they also control which also contain uranium, thorium and beryllium and probably a lot more REE. )

• 20-year mining license and all permits are in place

When the old communist Soviet empire broke up, the mining operation shut down. All the workers, who probably were underpaid to begin with, now weren't getting paid at all, so basically everybody dropped tools and walked off the job, never to return. The mine and factory lay abandoned for years afterward. The Kyrgyzstan government inherited title to what, to them, was just big pile of dirt and some strange looking old factory buildings. It sat around for years. They evidently didn't know what to do with it and finally sold it all off at auction. I estimate Stans bought it at better than a 98% discount.

Some of the Kyrgyzstan officials apparently suddenly realized that the "worthless" mine complex they just sold, was actually valuable to somebody. They then tried to shake down Stans for "gratuities" ( which to most people out here would read "bribes") and then when that didn' work, they came out with a bunch of edicts that basically forbade Stans to start mining. The actions of the officials put the Kyrgyzstan government in breach of contract. Kyrgyzstan, in the past, also agreed to binding international arbitration with Russia as third party. Stans appealed to Moscow for damages of $125 million. Findings are in Stan's favor for $118 million.

So even if Stans continues to be blocked from digging even one shovel full, $118 million in Kyrgyzstan assets held in Canada ( e.g. Centerra Gold stock) will get assigned to Stans in accordance with the international arbitration judgement.

So then, this, being the "worst case" scenerio: <g>

$118 million / 175 million fully diluted outstanding shares = approx. $ 0.67 per share

Either way, it seems reasonable to expect the share price to go up... GLTA