The 2/3'rds "prior" JV w/ CRRC was not acceptable to Hugo. It's obvious.

What was left in the MOC was the "primary binding agreement"

This "new" revised version of the quasi JV IMO will be a reverse merger. This relieves KRY in two parts;

1) LC start-up of $350+ milion

2) ISCID arb. costs + risks associated upon determination of claim.

I posted a example of the reverse merger with a Chinese rare earth miner "SHZ" that went thru the same. Look familiar?

http://finance.yahoo.com/echarts?s=SHZ+Interactive#symbol=shz;range=5y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=;

The 1 for 10 reverse split is part of a larger plan to amagamate the two entities into one enterprise utilizing the AMEX listing and allowing the CRRC a listing in the US.

The $25 million equipment sale is part of the exchange for both pre- and post merger balance sheet improvements. $15 million shy of the $40 million in part due to the pre-payment of the $100 million due Dec.30th 11' . Essentially the equipment sales to the CREC/CRRC reduce the start-up costs and run times into production. The equipment sold Appx $16 million last yr. will need to be replaced. Mainly earth moving and not the equipment in Houston leftover.

The big gripe is the ruiness SP and the options re-pricing along with the .45 strikes.

The flip side are the BOLD REALITIES of the AMEX de-listing and the the dire consequences of doing nothing and allowing the company to not be fully monitized I.E. equipment, plans ect ect.....and yes, the RS and RM.

Only my opinions and from what I see good possibilities.

Dendreonaire