Crystallex finishes Increible cleanup (January 16, 2006)

Crystallex International (KRY-T, KRY-X) has bought disgruntled Venezuelan partner Vengroup out of the minority share of the Lo Increible gold deposit in Bolivar state, Venezuela.

Under a year-end agreement, a subsidiary of Crystallex will buy Vengroup’s 49% interest in Lo Increible and its 30% interest in Tamanaco Holdings for US$3.6 million in an exchangeable promissory note, and 1.47 million shares, the shares having a deemed value of US$3 million.

In return, Vengroup drops its dispute with Crystallex over the shutdown in late 2003 of mining at the La Victoria deposit, part of the Lo Increible operation. Vengroup, seeking compensation for the period the mine would have operated had Crystallex not shut down production, launched an arbitration action in 2004 claiming US$42 million in damages and the cancellation of the Lo Increible project’s US$34-million debt to Crystallex.