Khan Resources Incorporated Up 15.38% Today
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Topic: Uranium Mining Stocks — January 26th, 2010
Khan Resources Incorporated put on $0.12 to close at $0.90 registering a gain of 15.38% which was on top of a similar gain yesterday.
On 3rd December 2009 we wrote the following: As we can see from the above chart an all cash offer of $0.65 per share could spell the end for Khan Resources Incorporated (KRI) as Russia increases the pressure to gain total control of this asset.
Khan Resources has been embroiled in a dispute with ARMZ over who controls the exploration license for the deposit, which was formerly a Russian open-pit uranium mine, and now that dispute has turned into a hostile takeover with ARMZ making an all-cash offer valued at C$35.1 million or 65 cents per share.
ARMZ is the world’s fifth-largest uranium producer and a subsidiary of the Russian state-owned nuclear energy corporation, Rosatom. In August of this year, Russia signed a joint-venture agreement with Mongolia on the Dornod uranium deposit. This surprisingly bad news for Khan came after the Mongolian government enacted a new nuclear law giving more control of uranium reserves to the state.
At the moment we have not found a reason behind these price increases so maybe one of our readers who is closer to the situation than we are may drop us a line and throw some light on the situation.
As holders of this uranium stock we are grateful for any increase in the price of the stock and hope that it continues to head north.
All the best.
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It looks to me as if Khan is playing nice with the Mongolian government.
http://finance.yahoo.com/news/Khan-Signs-Memorandum-of-ccn-116149259.html?x=0&.v=1
2 significant daily moves in row may not be fully explained by this news however.
Its definitely an interesting situation with the ARMZ tender offer ending Feb 1 at $0.65
Comment by Ryan — January 27, 2010 @ 12:36 am
Thanks Ryan, its wort adding here.
TORONTO, ONTARIO–(Marketwire - Jan. 25, 2010) - Khan Resources Inc. (TSX:KRI - News; “Khan”) announced today that it has signed a non-binding memorandum of understanding (”MOU”) with MonAtom LLC (”MonAtom”), the Mongolian state-owned uranium development company. The MOU establishes the principal elements of a joint venture transaction which would finalize the ownership structure surrounding the Dornod uranium project, and creates a framework for developing the project and bringing it into operation as expeditiously as possible. Khan’s objective in entering into this MOU is to protect and preserve value for Khan’s shareholders in light of the Mongolian Nuclear Energy Law, the status of Khan’s mining and exploration licenses in Mongolia and the hostile bid by JSC Atomredmetzoloto (”ARMZ”). Khan’s Board of Directors believes that the transactions contemplated by the MOU will, when completed, deliver far greater value to Khan’s shareholders than the $0.65 per share offered by ARMZ in its hostile bid.
Khan’s two principal assets in Mongolia are mining license 237A held by its 58% owned subsidiary Central Asian Uranium Company, Limited (”CAUC”) and exploration license 9282X held by its wholly owned subsidiary Khan Mongolia XXK (”Khan Mongolia”). CAUC is a joint venture between Khan (58%), MonAtom (21%) and the Russian company JSC Priargunsky Industrial Mining and Chemical Union (”Priargunsky”), a subsidiary of ARMZ.
Comment by Uranium Stocks — January 27, 2010 @ 3:03 am
Another 4.44% gain today, going well.
Comment by Uranium Stocks — January 28, 2010 @ 12:56 am
An update on the Khan situation.
China National Nuclear Corp has offered $0.96 Canadian to buy Khan. Management is recommending shareholders accept the offer.
http://www.reuters.com/article/idAFSGE6102JB20100201?rpc=44
This is great news for the sector in my opinion, as China buys up assets, a land grab for other uranium miners/juniors could propel prices higher. And hopefully the price for the metal will follow.
Comment by Ryan — February 2, 2010 @ 1:34 am
Khan closed at $1.00 today - onwards and upwards hopefully.
Comment by Uranium Stocks — February 2, 2010 @ 2:23 am