Good Evening,
Stans
Energy (TSX: HRE) secures litigation funding arrangement with Calunius
Capital (Calunius) . One hopes its on better terms than Rurelec Plc (RUR)
had. Although Stans have the advantage of an award made to the sum of $118M
against the Kyrgyz Republic.
Kyrgyz Republic is attempting to appeal the award to the International
Arbitration Court of the Moscow Chamber of Commerce and Industry. Having
already had the award set aside, its not an easy road for Stans.
One wonders what
funding arrangement has been made with Calunius, as a lot of the hard work had already been completed, or were they over a barrel. With a market cap of CDN$10m its not a stock without risks, orphans or those wishing for NS&I returns.
Without a doubt, Stans need cash and have been surviving on
paltry placements of circa CDN$500K. Perhaps the market is wise to the comments of Peter Earl Rurelec Chief Executive (bold is an addition) or the unknown date of the appeal.
"The results released today are massively affected by the write down we have been forced to take against the book value of our Bolivian assets following the disastrous Arbitration Award of the Permanent Court of Arbitration in The Hague on 1st February 2014 and the subsequent pressure placed on us by an avaricious and mean spirited lender whose lack of support forced us to agree with the Government of Bolivia a large discount against the already unsatisfactory PCA Award.
Rurelec may have some "financing" news out in due course, the market is right to price in the risks of a placing. In fact the company is in danger of getting a jam tomorrow award. Rurelec must be thankful of Radix Investments UK support, whom like Stirling may find themselves holding significantly longer than they intended.
Calunius are also funding Oxus
Plc (OXS) claim against Republic of Uzbekistan. OXS's
decision was meant to be finalised back in December 2014, however its
"slightly delayed."
Atb Fraser
