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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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Message: things to consider

things to consider

posted on Jun 24, 2009 01:41PM

if you're really trying to get to a value of a single share of kry, there is more to consider than the final award divided by the 300m +/- shares outstanding at this time.

first, there is the issue of what the value of the equipment is that we still own. that goes to the plus side.

second, the .5 per share warrants granted to all the investors who participated in the financing rounds over the years. i would think that would add to the total shares outstanding number unless their trigger is only tied to the issuance of the permit. not sure on that one, but have to assume some of them will come into play. that goes to the minus side.

the money raised by those .5 shares warrants being exercised needs to be considered, if that happens. that goes on the plus side.

then there is the large bond position that has to be paid off prior to any consideration of winding down the business and distributing assets to individual shareholders. which could only happen if there are no law suites pending or filed when all of this comes down. that goes to the minus side.

liquidation of a company to payout assets to existing shareholders can be an expensive, long and involved process. been there done that.

oh, and the notion that grz is asking for more money. they own (or did) the land that their mine resides on and i am sure they feel that the value of that land, after their proving its contents, is worth quite a bit today. we don't own the land we have proven up. so the two scenarios are apples and oranges.

just a reality check and, of course... just my opinion.

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