As you now well the law on the Nuclear Energy has vested the Nuclear energy regulatory Agency of Mongolia with authority to implement the policy of government concerning the exploration, exploitation and use of radioactive minerals and nuclear energy, introduce nuclear technology and develop nuclear research. It is incumbent upon this Agency to make nuclear and radiation safe, to ensure security and detect radioactivity.
Your company operates in Mongolia but we learned from the internet that your company proposed to buy the share of Khan Resources which is registered at the Toronto stock exchange market. Owing to this news our Agency issued this statement.
As it is stipulated on the power of government, the article 7.1 of the Nuclear Energy Law says that the license to explore and exploit radioactive minerals can be decided by the meetings of shareholders, board of directors and executive management and can be valid upon the confirmation of the Nuclear Energy Commission. Herein:
- sell, present, collateralize and transfer to others’ ownership, possession and exploitation in any other form more than 5 percent of shares of a particular company;
- newly issue voucher or security convertible into share, or additionally issue shares exceeding 5 percent of total shares previously issued by a particular company;
- re-structure a particular company by merging, integrating, splitting and separating.
Furthermore, in compliance with the Nuclear Energy Law of Mongolia article 7.2. if holder of licenses on exploration, exploitation of radioactive mineral should sell, present, collateralize and transfer to others’ ownership, possession and exploitation more than 5 percent of shares, decision of such shall submitted to the Nuclear Energy Commission with original copy of decision, name and address of holder of licenses and scope of activity within 14 days after taking the decision. Nuclear Energy Commission might require detailed information if it finds necessary.
Please note that if license holder does not fulfill its obligations specified in article 7.4 of the Nuclear Energy Law the state administrative authority in charge of nuclear energy issues shall invalidate the license.
On this occasion the Nuclear Energy Agency of Mongolia informs your company that our Agency did not renew the exploration license 9282X which Khan Resources has possessed and the mining license 237A held by its 58% owned subsidiary Central Asian Uranium Company due to the Law on Nuclear Energy of Mongolia.