Reuters is reporting this below. As usual when KRY is concerned take nothing at face value, but if this is true then it's all over for the scammers. There will be few tears shed and few politicians to lobby for KRY from Canada, that's for sure. Here's another take on the same story from the LatAm Herald.
Meanwhile I'll bet on the following scenario:
1) GRZ gets the offer it can't refuse from Rusoro (RML.v)...almost certainly an all-stock offer just for the Venezuela land assets
2) GRZ walks away with cash to spend somewhere else and a passive percentage in RML.v
3) The Vzla state and Rusoro develop the double site as one operation and split it all 50/50.
4) And we all live happily ever after. Except Robert Fung. Or anyone who ever believed him. Or his company.
Finally, this link has MIBAM dude Rodolfo Sanz saying that the gov't plans to take possession of Las Cristinas next year.
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Wednesday, November 05, 2008
CARACAS
Venezuela says it will take over Crystallex International Ltd.'s Las Cristinas gold project, one of Latin America's largest, marking the latest move by President Hugo Chavez to bring key industries into the hands of the state.
Venezuela's mining ministry said Wednesday the government aimed to start up the mine next year.
"This mine will be recovered and will be operated under state administration," the ministry said in a statement.
Crystallex, which operates the project under a contract, has waited for years for permission to begin mining the Las Cristinas deposit, located in a huge forest reserve in southeastern Venezuela.
Socialist Chavez has nationalized large swaths of Venezuela's economy, including energy, telecoms and steel companies.
UPDATE: here's the Bloomberg take
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Venezuela to Take Control of Crystallex's Gold Mine (Update1)
(Adds ministry's comments in third paragraph.)
By Daniel Cancel
Nov. 5 (Bloomberg) -- Venezuela's government will take control of the Las Cristinas gold mine operated by Crystallex International Corp. to assure state control over mining operations.
Las Cristinas is estimated to have about 31 million ounces of gold ore, valued at about $35 billion, the Mining and Basic Industries Ministry said today in an e-mailed statement.
``This mine will be recovered and will be operated under state administration,'' the statement said.
Venezuela's socialist government has seized control of industries that President Hugo Chavez has deemed ``strategic.'' Mining Minister Rodolfo Sanz said in the statement that the government plans to seize other mining deposits to increase production of gold, diamonds, bauxite and uranium.
Toronto-based Crystallex was given a 20-year contract to operate the mine in 2002 and hasn't been informed of any changes, Richard Marshall, vice president of Crystallex, said in a telephone interview.
Crystallex fell 13 cents, or 25 percent, to 38 cents a share as of 3:16 p.m. in Toronto Stock Exchange trading. The shares sank 43 percent on April 30 after the company said the environment ministry didn't plan to issue permits for Las Cristinas.
A ministry spokeswoman didn't immediately return phone calls seeking comment from Bloomberg News.
(Adds ministry's comments in third paragraph.)
By Daniel Cancel
Nov. 5 (Bloomberg) -- Venezuela's government will take control of the Las Cristinas gold mine operated by Crystallex International Corp. to assure state control over mining operations.
Las Cristinas is estimated to have about 31 million ounces of gold ore, valued at about $35 billion, the Mining and Basic Industries Ministry said today in an e-mailed statement.
``This mine will be recovered and will be operated under state administration,'' the statement said.
Venezuela's socialist government has seized control of industries that President Hugo Chavez has deemed ``strategic.'' Mining Minister Rodolfo Sanz said in the statement that the government plans to seize other mining deposits to increase production of gold, diamonds, bauxite and uranium.
Toronto-based Crystallex was given a 20-year contract to operate the mine in 2002 and hasn't been informed of any changes, Richard Marshall, vice president of Crystallex, said in a telephone interview.
Crystallex fell 13 cents, or 25 percent, to 38 cents a share as of 3:16 p.m. in Toronto Stock Exchange trading. The shares sank 43 percent on April 30 after the company said the environment ministry didn't plan to issue permits for Las Cristinas.
A ministry spokeswoman didn't immediately return phone calls seeking comment from Bloomberg News.