VHeadline Venezuela News reports: Toronto-based Crystallex International (KRY) admits that it is "in a difficult position" following Tuesday's surprise announcement by President Hugo Chavez Frias that a Venezuela-Russian 50/50 joint venture is to take over the giant Las Cristinas gold mine in southeastern Bolivar State.
In a widely-circulated email to a Crystallex shareholder, Vice president Richard Marshall said that "the continual communication we mentioned in yesterday news release (January 15) suggests that the Mine Operating Contract (MOC) is respected, in force and the Project could advance with a permit issuance!"
Marshall does, however admit that "However, the media statements, attributed comments (made by President Chavez) and suggestions are completely to the contrary!"
"As far as the statements made by President Chavez at the National Assembly on Tuesday, it is very rare that the President speaks from a speech even if there's one placed in front of him ... I believe his presentation at the AN was several hours and covered many areas of the Economy and very free flowing (unscripted)!"
- "Unfortunately, that approach in itself can lead to various interpretations of statements of context..."
"We continue to work on all fronts to address the Las Cristinas (situation) and our investment there with a goal of clearing any obstacles to its further development. Should the Venezuelan Government decide to no longer respect the MOC, we believe we have recourse under the Canada Venezuela Investment Protection Treaty and have advised them of our rights under the Treaty."
Topic "KRY Winner's Circle" started Apr-19-02 by cerealman2001
ReplyDeletecividale
1019 posts Jan-15th-09 3:20 PM
16391. "Comments from Richard Marshall"
In response to message #16390
The Company remains in a difficult position. The continual communication we mentioned in yesterday news release (the communication being written, spoken and/or direct meetings) suggests that the Mine Operating Contract (“MOC”) is respected, in force and the Project could advance with a permit issuance; However, the media statements, attributed comments and suggestions are completely to the contrary.
As far as the Statements made by President Chavez at the National Assembly (“NA”) Tuesday, it is very rare that the President speaks from a speech even if there’s one placed in front of him. I believe his presentation at the NA was several hours and covered many areas of the Economy and very free flowing (unscripted). Unfortunately, that approach in itself can lead to various interpretations of statements of context.
(There were a) number of media reports from September 2005 when various Venezuelan Official comments, Including President Chavez, predicted a new path for Las Cristinas without Crystallex and the MOC. At the time and for several months the uncertainty overshadowed the Company, shareholders and stakeholders until March of 2006 when the MIBAM finally spoke out and approved the project to advance. I expect many are waiting to see if this is a similar occurrence.
We continue to work on all fronts to address the Las Cristinas and our investment there with a goal of clearing any obstacles to its further development. Should the Venezuelan Government decide to no longer respect the MOC, we believe we have recourse under the Canada Venezuela Investment Protection Treaty and have advised them of our rights under the Treaty."
RM