* Sues ARMZ in Ontario Superior Court
* Alleges interference in JV with Mongolia govt
* Alleges interference in takeover offer by CNNC
* Alleges intent to eliminate mining license in Mongolia
Aug 20 Khan Resources Inc KRI.TO has sued
Russia's state-owned uranium miner ARMZ in the Ontario Superior
Court seeking C$300 million in damages for alleged unlawful
interferences in the Canadian explorer's Mongolian operations.
In a statement, Khan alleged that ARMZ and its affiliates
interfered in the joint venture between Khan and MonAtom LLC --
Mongolia's state-owned entity -- and sought to eliminate Khan's
mining and exploration licenses in the country, to help ARMZ
proceed with its own joint venture with the Mongolian firm.
Khan has been facing problems from Mongolian authorities
with regard to its flagship Dornod uranium project in the
"ARMZ has made no secret of its desire to acquire control
of the Dornod uranium property in Mongolia," Khan's Chief
Executive Grant Edey said in the statement.
A spokesperson said ARMZ had no immediate comment.
Khan, which had rejected an acquisition offer from ARMZ in
December [ID:nSGE5BE0K4], also said it was seeking damages for
ARMZ's interference in a takeover bid by a unit of China
National Nuclear Corp.
In May, Khan said its proposed C$56.5 million acquisition
by CNNC Overseas Uranium Holding Ltd would not go ahead as the
Chinese company had failed to obtain regulatory approval.
Khan said it will continue to defend its rights and
interests, including pursuing all available rights and remedies
in Canada, Mongolia and elsewhere.
Khan's stock, which has shed about 55 percent of its value
so far this year, closed up 14 percent at 32.5 Canadian cents
Friday on the Toronto Stock Exchange.
(Reporting by Gowri Jayakumar in Bangalore; Editing by Maju