Source: Reuters.com    Date: April 25, 2010

Shares of Khan Resources Inc. jumped 23 percent on Wednesday after the company said the Mongolian Nuclear Energy Agency's (NEA) move to invalidate the mining license of its units would not affect its buyout, and that it has challenged the decision in court. Earlier this year, the Canadian explorer agreed to be bought by a unit of China National Nuclear Corp in a CAD56.5 million deal.
"Khan has no new information to indicate that the purported NEA invalidation notices and other recent events in Mongolia will adversely impact CNNC's ability to obtain Chinese Government approval or the likelihood of the CNNC offer proceeding," it said in a statement.
It also said a Khan unit, Central Asian Uranium Co LLC, in which it holds a 58 percent stake, has filed a claim in a Mongolian court asserting that the NEA has no legal authority to make a decision to invalidate the mining license. Khan Resources LLC is also in the process of preparing a similar claim and intends to file it soon.
Khan Resources is also trying to start talks with the Mongolian Government regarding NEA's moves, and has sent a letter to the Prime Minister requesting him to review and overturn the decision.
The unit, in which Russian and Mongolian State concerns hold a 21 percent stake each, operates in the Dornod deposit in Mongolia which has uranium reserves of about 22,000 tons.