Khan Files Second Quarter 2014 Financial Results
23 Mai 2014 - 2:00PM
Marketwired Canada
Khan Resources Inc. (CSE:KRI) ("Khan" or "the Company") announced today that it
has filed its financial statements and management's discussion and analysis for
the six months ended March 31, 2014 on SEDAR and has posted these documents to
its website www.khanresources.com.
Highlights
-- International arbitration action against the Government of Mongolia -
All submissions and hearings have now been completed in respect of the
international arbitration action against the Government of
Mongolia for the illegal expropriation in 2009 of the Company's mining
and exploration licenses for the
Dornod uranium project in northeastern Mongolia. The hearing on merits
and quantum was completed between November 11 and November 15, 2013 and
two post-hearing briefs were subsequently submitted; the first on
February 5, 2014 followed by a final brief on April 11, 2014. The
Tribunal is now in the process of formulating their decision which is
expected in the second half of 2014. The amount of damages sought by
Khan currently exceeds $350 million.
-- Cash - Substantial cash outflows for legal expenses related to the
international arbitration came to an end during the period. Management
is now conserving its cash resources pending the judgment of the
Tribunal. The Company's rate of cash expenditures has declined
significantly since April 1, 2014. For more information, see the Cash
Flows and Liquidity discussions below.
-- Investments - As at March 31, 2014, Khan held 14.8 million common shares
of Macusani Yellowcake
Inc. ("Macusani"), which represents 9.3% of the 159.5 million Macusani
outstanding common shares.
The fair value of the investment at March 31, 2014 was $1,557,000 - an
increase of $393,000 from the value at September 30, 2013. The increase
was due to an improvement in the price of Macusani common shares from
$0.075 per share at September 30, 2013 to $0.105 per share at March 31,
2014, offset by the sale of 700,000 shares during February and March for
gross proceeds of $92,000.
-- Corporate matters - The Mongolian subsidiaries were closed on September
30, 2013 and all Mongolian tangible assets were retired. The windup of
these entities is expected to be completed in the third quarter.
-- The following table summarizes financial results of the Company for the
three and six months ended March 31, 2014 and 2013.
In thousands of dollars
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Change
2014 2013 %
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Net loss from continuing operations
Three months ended March 31 (765) (934) 18.1%
Six months ended March 31 (1,851) (2,095) 11.6%
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Net income (loss) from discontinued operations
Three months ended March 31 (30) (30) 0.0%
Six months ended March 31 3 (72) 104.2%
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Basic and diluted earnings per share ($)
Three months ended March 31 (0.01) (0.01) 23.4%
Six months ended March 31 (0.02) (0.03) 18.5%
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Cash flow
Six months ended March 31 (1,566) (1,975) 20.7%
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Cash and cash equivalents
As at March 31 665 2,705 -75.4%
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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:
Investor Relations Contacts:
Khan Resources Inc.
Grant Edey
President & CEO
Office: 416.360.3405
gedey@rogers.com
Khan Resources Inc.
Bruce Gooding
Chief Financial Officer
Office: 416.360.3405
bgooding@khanresources.com
Khan Resources Inc. (CSE:KRI)
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