Crystallex International (KRY) and Gold Reserve (GRZ) both said on Wednesday they have not heard from the Venezuelan government regarding statements by President Hugo Chavez that he will award their key gold concessions in the country to a third party.
Chavez said in a televised address on Tuesday he planned to give control of the massive Las Cristinas and Brisas concessions to Venrus, a joint venture between the government and Russia-controlled Rusoro (RML). The side-by-side gold deposits -- Las Cristinas is larger -- are in the Belgium-sized Imataca forest reserve. Crystallex has struggled for years to get final clearance to construct a mine at Las Cristinas. Its shares plunged last year as investors concluded it may never get the chance.
"Gold Reserve has had no communication from the government of Venezuela with respect to the matter," Gold Reserve said in a statement. In a similar statement, Crystallex said it has been in continual communication with senior Venezuelan officials and said the comments attributed to Chavez have not been raised with the company.
Such a move was first hinted at in November, when the country's mining minister told Rusoro it would operate the concessions, which hold nearly 30 million ounces of gold. Since then Rusoro has launched a hostile bid for Gold Reserve, which holds the Brisas concession.
Crystallex ended the trading session down half a Canadian cent at 21 Canadian cents on the Toronto Stock Exchange on Wednesday, while Gold Reserve rose 14 Canadian cents to C$1.29. Rusoro's all-stock bid for Gold Reserve -- it has offered three shares for each Gold Reserve share -- has been opposed by Gold Reserve. Rusoro rose 5 Canadian cents to 65 Canadian cents on the TSX Venture Exchange.
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