Khan Resources Company proposed a purchase of Western Prospector
With purposes of strengthening its position and influence in uranium sector, a Canadian Company Khan Resources proposed to acquisition of shares of and merge with Western Prospectors group. However the proposal was like a demand. WPG rejected the proposal, but Khan Resources Company left the proposal open until June 20 without adjusting conditions. These two companies trade their shares at Toronto Stock Exchange and both own deposits in Dornod province. In addition, WPG has coal deposits in Choibalsan and Baganuur.
Khan Resources believes firmly that it could buy WP and it owns 58 percent of uranium deposit covering an area of 261 hectares in Dornod. Before initializing talks with the Government of Mongolia it gives priority to expand its deposit by incorporating Gurvanbulag deposit of WP Company. Observers view that at the beginning of investment and mining agreement it might propose the Government a condition to get discounts at pre-emptive right and without competitors. On the other hand, it is related to the Government negotiations and talks on using uranium deposits with Russia, using nuclear energy for peace purposes and establishing nuclear power station started already.
It is considered that Mongolia has 60 thousand tons of uranium resources however Russia estimated it between 120000 and 150000 tons.