Khan Resources says Mongolian court OKs mining license
* Says court rules in favor of unit CAUC's licence
* Says CAUC eligible for license re-registration
* Shares nearly double (Recasts; Adds details, background, updates share movement)
July 19 (Reuters) - Khan Resources Inc (KRI.TO) said a Mongolian administrative court invalidated a decision of the Nuclear Energy Agency (NEA) to cancel its unit's mining license, boosting the Canadian miner's prospects of developing a high-potential uranium project in the country.
Khan Resources shares, which have lost about 75 percent of their value since April after the mining license of its majority-owned unit Central Asian Uranium Co LLC (CAUC) was cancelled, rose as much as 96 percent on the Toronto Stock Exchange.
The company said the Mongolian Capital City Administrative Court has ruled in its favor and the mining license held by CAUC is no longer considered invalidated, and would be eligible for re-registration by the NEA.
Khan said it will continue to challenge the NEA action and was hopeful that its other unit Khan Resources LLC, whose hearing is scheduled for July 22, will also get a favorable decision from the court.
Khan shares were up 18 Canadian cents at 41 Canadian cents Monday afternoon on the Toronto Stock Exchange.
"Mogi" Munkhdul Badral
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