The reason given for the delay has been paper work and the complexity of the deal. The June 7th preliminary agreement says:

In the event that the parties determine to establish JV Subco, the A&F Agreement shall provide for the transfer by Crystallex of the Mine Operating Contract between Crystallex and Corporacion Venezolana de Guayana (“CVG”) dated September 17, 2002 (the “MOC”) and the assets related to the Project and the issuance of the Environmental Permit (as defined herein) to JV Subco. In the event that the parties determine to form an unincorporated Joint Venture, the A&F Agreement shall provide for the transfer or issuance, as the case may be, of a two-thirds interest in the MOC, the assets related to the Project and the Environmental Permit to CRRC or its designated affiliate.

It is pretty clear to me that there is going to be a JV formed between CRRC and Kry. The permit and MOC will be held in this JV along with other assets such as the equipment. It is unfortunate that a set time line was given and missed but it does not change the fact that no one has been able to show any proof this JV deal has fallen apart. It is up to the individual to either believe management is being honest that the delay has been procedural and has not been due to any problem with the content of the JV.

The parties agree that the structure and steps in connection with the establishment of the Joint Venture and the other Transactions contemplated herein have not been finalized. Following execution hereof and during the Exclusivity Period, the parties shall, in good faith, work to finalize the Joint Venture structure and the structure of all Transaction steps to achieve the required tax objectives and commercial results of the parties, and to ensure that such structure does not result in a material adverse tax or accounting consequence for a party or its affiliates or cause either party or its affiliates to be in breach of a contractual or other legal obligation or cause either party or its affiliates to incur a material tax liability.

Here Kry says that the structure and steps in connection with the establishment of the Joint Venture and the other Transactions contemplated herein have not been finalized. We have posters saying that everything is still up in the air and the deal is not done. This contradicts what Kry says above. The nuts and bolts of the deal were agreed upon before the June 7th announcement. The accountants and lawyers gave the time line saying they could get everything completed by the time line. Just because they screwed up the time line it doesn`t change the deal.

Everything being done now has to do with setting up the proper corporate structure in the best tax jurisdiction. When the mail out comes so will our answers.