Yes, KRY has some value if the permit is denied, however, the market may take it down well below 50cents. If Chavez was to deny the permit I don't see him offering much for a buyout, since he would see no value to KRY. This would put a huge strain on the Canada/VZ bi-lateral trade agreement, and might even result in a desolution of this agreement.
In the true sense of statistics it is a coin flip chance of the permit, Yes or No. At this point I think no one can really tell what chance KRY has for getting the permit. The market is telling us,that there is very little chance KRY gets the permit. However, the market allways assume the worst case scenario and acts on it.
After/If the permit is granted KRY market cap will probably be around 2 billion or 6 dollars per share.
JMHO