Stans Energy Announces Management Cease Trade Order
This press release replaces the press release disseminated November 28, 2013 at 8:08 p.m. ET. The press release contained an incorrect date in the 7th paragraph. The corrected press release is below:
STANS ENERGY ANNOUNCES MANAGEMENT CEASE TRADE ORDER
Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), (“Stans” or the “Company”), announces that it has made an application to the Ontario Securities Commission to approve a temporary management cease trade order (“MCTO”) under National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203"), which, if granted, will prohibit trading in securities of the Corporation by certain insiders of the Corporation, whether direct or indirect.
The Company is unable to file its 2013 unaudited interim financial statements for the quarter ended September 30, 2013, management discussion and analysis (MD&A) relating to the unaudited interim financial statements, and CEO and CFO certificates relating to the unaudited interim financial statements, as required by National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (collectively, the “Required Filings”) by the November 29, 2013 filing deadline.The reason for the delay is that the Company is considering impairment charges against its assets and needs more time to determine the appropriate impairment for inclusion in our financial reporting. IFRS 6 Exploration for and Evaluation of Mineral Resources requires entities recognizing exploration and evaluation assets to perform an impairment test on those assets when facts and circumstances suggest that the carrying amount of the assets may exceed their recoverable amount. Entities shall measure the impairment in accordance with IAS 36 Impairment of Assets once it is identified. On October 31, 2013, Stans announced that it had filed an international arbitration action against the Government of Kyrgyzstan for its expropriatory and unlawful treatment of the issuer in relation to the issuer’s Kutessay II rate earth project. Stans has complained that state action and inaction has unduly delayed, prohibited and prevented it from completing necessary pre-feasibility, feasibility, and other development work at Kutessay II, and generally has resulted in the issuer being deprived of the value of its asset. This arbitration does not strictly relate to state action or inaction with respect to the issuer’s other properties, but there are dependencies which need review and analysis. We also observe that our stock market capitalization has fallen below the carrying amount of our assets.
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