Published: Thursday, December 03, 2009
Bylined to: VHeadline.com Reporters

Solution to Las Cristinas debacle in sight for Crystallex International?

VHeadline Venezuela News can exclusively reveal today that Toronto-based gold mining corporation Crystallex International chairman & CEO Robert Fung is in mainland China for negotiations with major Chinese interests for a solution to his company's impasse with the Venezuelan government over the giant Las Cristinas gold mine in south-eastern Bolivar State.

According to confidential sources close to the company, Fung is in last ditch negotiations to relinquish the Mine Operating Contract with the Venezuelan government on the realization that, in its present form, Crystallex will never mine Las Cristinas or any other in a myriad of gold mining opportunities in Venezuela.

The company has already stated that it has sufficient cash flow to take it into early 2010 but is faced with demands from note holders that could otherwise see the company facing imminent bankruptcy.

However, sources in Singapore who have been tracking Fung's Asian odyssey say he is close to clinching a deal where Chinese interests take over Crystallex in its totality to get rid of the company's controversial local (Venezuela) management and start off 2010 on a "new foot" with Venezuelan authorities who have already given the nod to their approval of a Chinese resolution.

Although no financial accommodations have been mentioned as yet, it is understood that Fung has negotiated a deal said to be worth around $4-5 a troy ounce to ditch Las Cristinas but we are awaiting further clarifications as and when the deal is made public during the early days of next Month (January 2010).