Re: China

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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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jimmijazz

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Re: China

in response to

Re: China

EZ Street

posted on Oct 10, 2010 10:14PM

EZ, I take exception to being called negative. I agree this is a good deal when the alternative was arbitration but I think we have to face the facts when looking at our situation.

Had things gone as planned we would own 100% of the MOC which is far better than 1/3. We would have had dilution either way but with a permit to operate the mine we wouldn't have been doing it at .50 with a half warrant.

The current deal with the Chinese financing everything is terrific but if we had had the permit financing wouldn't have been a problem. To suggest this is a fantastic deal compared to owning 100% of the MOC is beyond cheer leading. A 50% deal would have been much better. So would have been getting credit for the 1/2 billion we already spent.

I'm focused on our current deal and not dwelling in the past but to ignore the fact that this great deal cost us 2/3 of the MOC because VZ wouldn't give us the permit is just silly.

Gilly,

Yes as far as I'm concerned we're in a great position. Only the negative minded dwell on the 2/3 part of the deal. We are also getting a virtually free from financing project and in todays world business climate, that's an incredible coup in this. This project should be a cash cow for KRY with even our monthly expense load coming out of cash flow, if everything goes as planned. The Chinese will pay the expenses until the cash is available and then we'll just pay them back. The Chinese are responsible for building everything. Regardless of what anybody tries to sell you, this is the best deal they could have ever engineered, mainly because of China's financial power in all the other area with Venezuela. Nobody else could even come even close to the Puppet Master roll China is playing in Venezuela, especially in todays economic climate....period.