Shares in Crystallex International (KRY-T) rebounded to the tune of 50, or 30%, to $2.15 in early trading in Toronto on Sept. 21, after the company said there has been no change in the status of the Las Cristinas project or its mine operating contract in Venezuela.
“We are aware of newswire reports which have resulted in pressure on the share price of the company in particular, and on Venezuelan gold mining companies in general,” said Crystallex CEO Todd Bruce in a prepared statement from the company’s offices in Caracas.
Bruce says media reports quoting President Hugo Chavez as saying in a televised speech that ‘Las Cristinas belongs to Venezuela. We will build a national mining company there'” are consistent with the situation at the project.
He says that Las Cristinas is indeed owned by the Venezuelan government and administered by state-owned Corporacin Venezolana de Guyana (CVG). CVG has in turn contracted Crystallex to develop the project.
Bruce adds that his company’s development contract with CVG would persist even if Las Cristinas becomes part of the country’s proposed national mining company. “Nowhere has it been said that Venezuela does not intend to honor valid and subsisting contracts with reputable and performing international companies.”
“The creation of the new national mining company would therefore have no practical impact on Crystallex as it is the mine operating contract that governs our role,” he added.
Crystallex says it plans to fulfill its obligations under its mine operating agreement upon receipt of the final environmental permit.
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