Khan Files Second Quarter 2013 Financial Results
TORONTO, ONTARIO -- (Marketwired) -- 05/17/13 -- Khan Resources Inc. (CNSX: KRI) ("Khan" or "the Company") announced today that it has filed its financial statements and management discussion and analysis for the six months ended March 31, 2013 on SEDAR and has posted these documents to its website www.khanresources.com.
Highlights for the quarter include:
-- International arbitration action against the Government of Mongolia -
Submissions on the merits and damages arising from the Mongolian
Government's expropriatory and unlawful treatment of Khan were filed by
the Company on December 7, 2012. With that filing, Khan's claim has been
revised upwards from $200 to $326 million. The December 7, 2012
submissions were pursuant to the Tribunal's ruling on July 26, 2012
which dismissed all of Mongolia's objections to the continuance of the
suit. A Statement of Defense and Counterclaim by the Respondents was
submitted to the Tribunal on April 5, 2013. Additional submissions by
both the Claimants and Respondents will be submitted in the summer and
fall of 2013. The formal hearing by the Tribunal on the merits and
damages for the case is scheduled for November 11 through November 15,
2013.
-- Atomredmetzoloto ("ARMZ") litigation - On April 2, 2013 the Court of
Appeal for Ontario dismissed Khan's appeal to validate, substitute or
dispense with service of Khan's Statement of Claim. ARMZ had avoided
service of the Statement of Claim as the Russian Ministry of Justice had
invoked Section 13 of the Hague Convention which allowed Russia to
refuse to serve ARMZ as a matter of Russian sovereignty or security.
Khan is reviewing the decision and is considering the options available
to it. The next stage of appeal would be the Supreme Court of Canada.
-- Khan holds 15.5 million common shares of Macusani Yellowcake Inc.
("Macusani") which represents 9.7% of the 159.5 million Macusani
outstanding common shares. The value of the Company's investment in
Macusani as at March 31, 2013 was $1,708,000, a decrease of $466,000
from its value at September 30, 2012.
-- The following table summarizes financial results of the Company for the
three and six months ended March 31, 2013 and 2012.
In thousands of dollars
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Change
2013 2012 %
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Net loss
Three months ended March 31 (964) (1,259) 23.4%
Six months ended March 31 (2,167) (2,191) 1.1%
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Basic and diluted earnings per share ($)
Three months ended March 31 (0.01) (0.02) 38.7%
Six months ended March 31 (0.03) (0.04) 20.8%
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Cash flow
Six months ended March 31 (1,975) (2,016) 2.0%
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Cash and cash equivalents
As at March 31 2,705 3,911 -30.8%
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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.
Contacts:
Khan Resources Inc.
Grant Edey
President & CEO
416.360.3405
gedey@rogers.com
Khan Resources Inc.
Marilyn Barton
Manager, Administration
416.360.3405
mbarton@khanresources.com
www.khanresources.com