TORONTO, ONTARIO--(Marketwired - Dec. 11, 2015) - Khan Resources Inc. (CSE:KRI) ("Khan" or "the Company") announced today that it has filed its financial statements and management discussion and analysis for the year ended September 30, 2015 on SEDAR and has posted these documents to its website www.khanresources.com.
Highlights for the year include:
International arbitration award - On March 2, 2015 the international arbitration tribunal rendered an award to Khan as compensation for the Government of Mongolia's illegal actions in relation to the cancellation of Khan's uranium licenses in 2009. As of the date of the approval of this MD&A, December 10, 2015, the award aggregates to approximately $105.6 million (US) with interest currently accruing at a rate of 2.78% or $7,256 per day (US). In Canadian dollars at December 10, the value of the total award was $144 million.
On June 12, 2015 the Company filed a petition for confirmation of its international arbitration award in the US District Court in the District of Columbia. Mongolia responded to the petition by filing on September 4, 2015 a motion to dismiss or stay the Company's petition. These were followed by memoranda by the Company and by Mongolia on September 29 and October 13 respectively in support of the corresponding arguments. In addition, Mongolia has requested a verbal hearing of the arguments. The Judge on the case has not yet made any rulings. When confirmed, the award will be executable in the US as a court judgement and the Company can begin a process of seizure of non-immune Mongolian sovereign assets in the US. In a case with a number of parallels to Khan's case, the US District Court granted on November 20, 2015 Gold Reserve Inc.'s petition to confirm their international arbitration award against Venezuela for the expropriation of Gold Reserve's gold concessions. Gold Reserve's petition was filed approximately six months prior to Khan's petition.
On July 9, 2015, the Government of Mongolia filed a notice in the French Court of Appeal in Paris for annulment of the international arbitration Award. The Government of Mongolia filed their arguments in support of the annulment on December 9, 2015. The Company's counsel is currently reviewing those arguments and has until April 9, 2016 to file the defense.
A meeting was held in early December with representatives of the Government of Mongolia to discuss the outstanding obligations of the Government of Mongolia.
Cash - A non-brokered private placement was completed on June 2, 2015.The Company issued 5 million common shares at a price of $0.40 per share and received aggregate gross proceeds of $2 million. The proceeds of the private placement are being used to advance proceedings to enforce the collection of the arbitration award and to defend the annulment proceedings and for general corporate purposes.
During the year ended September 30, 2015 the Company received proceeds of $726,000 from the exercise of share options by its directors, officers and employees.
Cash balances are also being supplemented by the sale of investments.
Investments - The fair value of Plateau Uranium Inc. ("Plateau") shares held at September 30, 2015 was $316,587. During the year ended September 30, 2015 the Company sold 750,000 Plateau shares for proceeds of $208,500. The Company's remaining holdings represent 2.3% of the 40 million Plateau outstanding common shares. Plateau was previously called Macusani Yellowcake Inc. ("Macusani"). The name change along with an 8 for 1 share consolidation occurred on April 30, 2015.
The following table summarizes financial results of the Company for the fourth quarters and the years ended September 30, 2015 and 2014.
|In thousands of dollars|
|Net loss from continuing operations|
|Three months ended September 30||(942||)||(160||)||-488.8||%|
|Twelve months ended September 30||(2,663||)||(2,400||)||-11.0||%|
|Net income (loss) from discontinued operations|
|Three months ended September 30||-||(17||)||100.0||%|
|Twelve months ended September 30||(3||)||(29||)||89.7||%|
|Basic and diluted earnings per share ($)|
|Three months ended September 30||(0.01||)||-||-100.0||%|
|Twelve months ended September 30||(0.03||)||(0.03||)||0.0||%|
|Twelve months ended September 30||(1,219||)||(1,879||)||35.1||%|
|Cash and cash equivalents|
|As at September 30||1,571||352||346.3||%|
|As at September 30||1,742||1,242||40.3||%|
Forward-Looking Statements and Information
This press release may contain forward-looking statements and forward-looking information, which are subject to certain risks, uncertainties and assumptions. Forward-looking statements and information are characterized by words such as "will", "plan", "expect", "project", "intend", "believe", "anticipate", "forecast", "schedule", "estimate" and similar expressions, or statements that certain events or conditions "may" or "will" occur. Forward -looking statements and information are not historical facts and are based upon a number of estimates and assumptions and are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors, including the impact of international, Mongolian and Canadian laws, trade agreements and regulatory requirements on Khan's business, properties, licenses, operations and capital structure, Khan's ability to re-instate or re-register the Dornod uranium project licenses, regulatory uncertainty and obtaining governmental and regulatory approvals, legislative, political, social, regulatory and economic developments or changes in jurisdictions in which Khan carries on business, the nature and outcome of pending and future litigation, arbitration and other legal proceedings, the speculative nature of exploration and development, risks involved in the exploration, development and mining business, changes in market conditions, changes or disruptions in the securities markets and market fluctuations in prices for Khan securities, the existence of third parties interested in purchasing some or all of the common shares or Khan's assets, the method of funding and availability of any potential alternative strategic transactions involving Khan or its assets, including those transactions that may produce strategic value to shareholders, the need to obtain, maintain and/or re-register licenses and permits and comply with national and international laws, regulations, treaties or other similar requirements, and uncertainty in the estimation of mineral reserves and resources. In addition, a number of other factors could cause actual results to differ materially from the results discussed in such statements and information, and there is no assurance that actual results will be consistent with them. For further details, reference is made to the risk factors discussed or referred to in Khan's annual and interim management's discussion and analyses and Annual Information Form on file with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Such forward-looking statements and information are made or given as at the date of this news release, and Khan assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.