Perhaps a Reason Why No Big Pop Yet?

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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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Z_Greek

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Perhaps a Reason Why No Big Pop Yet?

posted on Jun 07, 2010 10:57AM

In my opinion the market is having trouble digesting the terms of the deal with the Chinese. On the one hand we have all the issues that seem to have stopped the project being addressed. On the other hand, in order to get to this point, KRY had to dilute/give away 75% of the pie.

66% on the initial terms of the deal

9% = net amount of 20% option to buy KRY shares @ $0.40/share up to 20% of the total shares of KRY in the next 5 years, + etc.

Hopefully the market will also realize that KRY does not have to dilute further to raise cash to build the mine, pay the bondholders, etc. so that the net result is a big boost as the day wears on.