Stans Energy Signs MOU with Pervomayskiy LLC to Acquire Zabaikalsky Mill and Associated Lithium Assets
TSX VENTURE: HRE
TORONTO, ON / ACCESSWIRE / September 5, 2017 / Stans Energy Corp. (TSX-V: HRE, OTC PINK: HREEF), ("Stans" or the "Company") is pleased to report that the company has entered into a binding memorandum of understanding ("BMOU") which will allow Stans to acquire up to 100% of Pervomayskiy GOK LLC (PGOK), a Russian limited liability corporation, the owner of a lithium mineralization stockpile (the "Stockpile") the Zabaikalsky Mill (the "Mill") and supporting infrastructure (together the "Project")
Stans and PGOK initially entered into a memorandum of understanding ("MOU") on August 25, 2016, Since that time Stans has undertaken a legal due diligence review on the PGOK ownership rights of the Project. In this time, PGOK has been addressing land parcels ownership issues identified by Stans' counsel Norton Rose Fulbright Moscow. Furthermore, Stans also secured an MOU for a strategic partnership with Atomredmetzoloto JSC (ARMZ), the mining arm of ROSATOM, the Russian State Atomic Agency, (see Stans press release dated July 27, 2017) to develop business in specialty and energy metal production and processing including lithium.
ARMZ and PGOK have also entered into a MOU on August 18, 2017 so that ARMZ can begin its own due diligence process on the Project as required by its regulatory and compliance departments. This due diligence will be separate and parallel with the due diligence that Stans is undertaking on the Project.
Stans and ARMZ will proceed to complete their separate due diligence work programs to satisfy both Russian Federation subsoil requirements and NI 43-101 standards. This BMOU between Stans and PGOG represents a significant step forward in Stans' plans to produce lithium and related products within the Russian Federation with ARMZ as Stans' strategic partner.
As a first step in the implementation of this Project, a site visit to Pervomayskiy township was conducted with representatives from Stans, ARMZ and PGOK in attendance. The objective of the site visit was to formulate a detailed plan and coordinate efforts for the due diligence work required by Stans and ARMZ to produce an economic assessment of the Project to their respective standards.
Upon completion of the due diligence and assessments, Stans will be able to enter into a definitive purchase option agreement with PGOK, and a Project development agreement with ARMZ. The goal for all parties is the resumption of lithium concentrate production at the Pervomaiskiy site and associated downstream products at existing ARMZ facilities located in the same region.
"Now that Stans and ARMZ are moving forward with complete project due diligence, Stans will be able to capitalize on some of the synergies that exist between Russian subsoil requirements and NI 43-101 standards. ARMZ has already begun research and work programs that will assist our team with our technical due diligence." states Rodney Irwin, CEO and President, "The goal of the due diligence process is for Stans, PGOK and ARMZ to be able to determine the best structure for jointly developing the Pervomayskiy Project."
About Atomredmetzoloto JSC
ARMZ Uranium Holding Co. (JSC Atomredmetzoloto or the "Uranium Holding") is the mining arm of ROSATOM, State Atomic Energy Corporation, one of the leaders of the global uranium market. The Holding controls Russian uranium mining assets situated in the Trans-Baikal Territory, Republic of Buryatia, Kurgan region and Republic of Yakutia, in addition to other global assets. ARMZ concentrates on multi-year field development and unique competencies that enable ARMZ to perform a wide range of uranium projects – from geological exploration, development and design to reclamation of production facilities.
About Pervomayskiy GOK LLC
Pervomayskiy PGOK LLC ("PGOK") is the owner of the stockpile and mill which are associated with the historic mining operations of Zabaykalskey Mining Complex (ZMC) which starting from 1942 had overseen over 60 mining projects in the Trans-Baikal Region of Russia. The ZMC main operation (the Mine) was centered around Zavitinsky Lithium deposit. A full array of infrastructure is available at the Mine site including: electricity generating power station and substation, heat and water supply, tailings storage and railways terminals. The mill is directly connected with the Trans-Siberian Railway.
The Mine was in production from 1942 through the mid 1990's, and was the Soviet Union's only active lithium mine. The Mine produced over 100,000 tonnes of lithium in concentrate form over its life span. A cut-off grade of Li₂0 of 0.3% was set by the state for mining operations, as the primary use of lithium at that time in the Soviet Union was for military purposes and market economics were not a consideration. The mill produced concentrates of both beryllium and lithium while the mine was in production, and after the mine was closed the mill continued to process fluorite, gold, and antimony ore through to 2010 when it was put under care and maintenance due to a lack of feed material. The stockpile contains according to historic estimates approximately 19,000,000 tonnes of mineralized material grading at or below 0.3% Li₂0, This historical estimate does not constitute a current mineral resource or mineral reserve. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, Stans is not treating the historical estimate as current mineral resources. Stans will be confirming both the volume and grade as part of its' due diligence process.
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.