Chinese motivation

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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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Chinese motivation

posted on Oct 05, 2010 07:35PM

Chinese motivation to complete JV with Crystallex:

Would it be as strong as it was in September 2009 when they asked the Venezuelan Government if China Railway would be acceptable?

Price of gold Sept 2009, average USD 950/0z

Price of Gold October 2010, average USD 1340/oz

Increase in price = 40 %

What is 2/3rd's of Las Cristinas worth now compared to Sept. 2009?

OK, I think we get the idea. Reaching a deal with CREC/CRRC might have been tough because of all the legal agreements etc but ask yourself this question:

WHY WOULD CHINA RAILWAY WALK FROM THIS DEAL, WHY WOULD THE CHINESE GOVERNMENT WALK FROM THIS DEAL?

If your answer is....they won't walk then we wait till Venezuela gives them/us the permit and MOC transfer. I can't think of a simpler way to say it.