Khan Files Fiscal Year End 2013 Financial Results
January 15 2014 - 7:00AM
Marketwired Canada
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 year ended September 30, 2013 on Sedar and has posted these documents to its
website www.khanresources.com.
Highlights for the year include:
-- International arbitration action against the Government of Mongolia -
the hearing by the International Arbitration Tribunal on merits and
quantum was held and completed between November 11 and November 15,
2013. Arguments were heard by the Tribunal from Khan and from the
Government of Mongolia on the merits of the case and the damages
incurred by Khan due to the illegal expropriation in 2009 of the mining
and exploration licenses for the Dornod uranium project in northeastern
Mongolia. The amount of damages sought by Khan currently exceeds $326
million.
-- Investments - During the year, the fair value of the Company's
investment in Macusani Yellowcake, Inc. (Macusani) common shares
decreased by $1,009,000 net of an impairment reversal of $233,000 which
was recorded in accumulated other comprehensive income (loss) (2012 -
impairment loss of $1,953,000).
-- Equity issue - On September 24, 2013, the Company announced the closing
of a non-brokered private placement financing resulting in the issuance
of 7,237,703 common shares at a price of $0.17 per common share for
gross proceeds of $1,230,410. The Company plans to use the proceeds of
the offering to advance the international arbitration case against the
Government of Mongolia and for general corporate purposes.
-- Corporate matters - On August 22, 2013 the Company decided to close its
operations in Mongolia. Results of Mongolian operations were a loss of
$219,000 (2012 - loss of $ 16,261,000) and the results are rep orted as
discontinued operations on the face of the Company's audited
consolidated statement of comprehensive loss for the year ended
September 30, 2013 with reclassified comparative results for the year
ended September 30, 2012.
-- 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 against ARMZ, its
Russian partner in Mongolia. 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 has decided not to
appeal this decision to the Supreme Court of Canada.
The following table summarizes financial results of the Company for the fourth
quarter and the years ended September 30, 2013 and 2012.
In thousands of dollars
Change
2013 2012 %
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Net loss from continuing operations
Three months ended September 30 (1,844) (2,408) 23.4%
Twelve months ended September 30 (5,060) (5,362) 5.6%
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Net loss from discontinued operations
Three months ended September 30 (121) (135) 10.7%
Twelve months ended September 30 (219) (16,261) 98.7%
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Basic and diluted earnings per share ($)
Three months ended September 30 (0.03) (0.04) 24.4%
Twelve months ended September 30 (0.08) (0.36) 78.3%
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Cash flow
Twelve months ended September 30 (2,449) (1,247) -96.4%
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Cash and cash equivalents
As at September 30 2,231 4,680 -52.3%
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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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Khan Resources Inc.
Grant Edey
President & CEO
416.360.3405
gedey@rogers.com
Khan Resources Inc.
Bruce Gooding
Chief Financial Officer
416.360.3405
bgooding@khanresources.com
www.khanresources.com
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