Khan Resources Inc., and its predecessor companies, were involved in the development of the Dornod uranium property in Mongolia since 1995. In July 2009, the Government of Mongolia promulgated its Nuclear Energy law, which among other items, provided the State with 51% of the Dornod property without compensation to prior owners.
Further, in 2010, the Government of Mongolia refused to reissue to Khan the required licenses for the Dornod property which effectively resulted in 100% expropriation of the asset without any compensation. As a result of these actions, Khan launched an international arbitration action against Mongolia for the illegal expropriation of its asset in January, 2011. In March 2015, the international arbitration tribunal rendered an award in favour of Khan of US$80 million plus costs of US$9 million plus interest at LIBOR plus 2% from July 2009 to the date the award is paid. In May 2016, the Company accepted US$70 million from the Government of Mongolia in settlement of all outstanding matters pursuant to the arbitration. In November 2016, the shareholders approved a special resolution for the voluntary liquidation and dissolution of Khan. The Company is currently in the process of liquidation.