Mining PRs and the Ottotrans™, Part 38

Today's example of "mining NR to real English" comes from Crystallex (KRY) (KRY.to), known in politer circles as "the stock that dare not speak its name".

This is what they wrote:

TORONTO, ONTARIO--(Marketwire - 04/05/11) - Crystallex International Corporation (TSX:KRY - News)(AMEX:KRY - News) has been advised by the NYSE Amex that trading in its common shares has been halted by the NYSE Amex based upon its determination that the Company no longer meets the qualitative standards for continued listing because NYSE Amex believes at this time that the Company is no longer an operating Company.

The Company expects to receive a letter from the NYSE Amex today as an initial step to begin a delisting process. The Company intends to appeal this determination and if necessary request a hearing before an NYSE Amex listings qualifications panel.

And this is what it means:

TORONTO, ONTARIO--(Marketwire - 04/05/11) - Crystallex International Corporation (TSX:KRY - News)(AMEX:KRY - News) has been advised by the NYSE Amex that trading in its common shares has been halted by the NYSE Amex based upon its determination that the Company no longer meets the qualitative standards for continued listing because NYSE Amex believes at this time that the Company is no longer an operating Company. Haha! PSYCHE! All this time AMEX thought we were an operating company! My stars we laughed when we got the mail from the market guys. Anyway, we'll appeal because it's a gross injustice and....what was it again? Oh, I forget. But we have lots of gold and we're bound to win our action against Hugo and he's bound to pay up without saying a word, so buy our stock. Who needs an Amex listing anyway?

The best post written about Crystallex ever

Right here from the wonderful world of Setty. And by the way, the title of his missive also applies to this humble corner of cyberspace. Enjoy.

Breaking: Gold Reserve (GRZ) and Crystallex (KRY) expropriated by Venezuelan government

The Correo de Caroní is today reporting that the Venezuelan government has taken over control of the Brisas (GRZ) and Las Cristinas (KRY) gold projects.

Here's the beginning of the text translated into English:

October 27: The camp of the multinational Canadian Gold Reserve, Brisas del Cuyuní, located in Las claritas, was taken over by functionaries of MIBAM and hand over to the state run Minerven who from now on will be in charge of the installations. Luis Herrera, president of Minerven, was present at the occupation at which the Correo del Caroní was exclusive media witness.

Here's how the original Spanish text begins:

El campamento de la trasnacional canadiense Gold Reserve, Brisas del Cuyuní, situado en Las Claritas, fue tomado por funcionarios del Ministerio del Poder Popular para las Industrias Básicas y Minería (Mibam) y entregado a la estatal Minerven que desde ahora se hará cargo de las instalaciones. Luis Herrera, presidente de Minerven, estuvo presente en la ocupación a la cual asistió en exclusiva Correo del Caroní.



For those who think it's a hoax, here's a scan of the relevant page of today's Correo Del Caroní.

UPDATE: 32 minutes after IKN reports it, GRZ admits it in this news release.

Crystallex winning hearts and minds in Venezuela

In Venezuela, the government estimates that one in every three women suffers violence against their person. This report mentions that stat as part of the wider story of the latest initiative to widen women's access to help centres and support groups against this violence.

As a topical example of this violence and the way women are now less afraid to report their beatings, here's a report from Venezuela's Correo del Caroní about a woman named Andrea Franco, a graduate mining technician who suffered severe bruising from a beating she got from a man that also threatened her with a firearm. The agressor's name is Claudio Turchetti, who apart from being a sicko with a history of violence is, strangely enough, the chief of security for Crystallex (KRY) at its KM88 'Las Cristinas' property.

Yep, those KRY people really care about community relations.....

VenRus: a new word for your mining dictionary, care of Hugo

In his national assembly speech, Hugo Chávez said the following:

"In 2008 we created the mixed company (joint venture) VenRus with Russia, a Russian and Venezuelan company. A JV for the deposits of Las Cristinas."

So come on everybody, one last chorus with me. We're not going to get the chance to sing this one again..............

"19 bottles of beer on the wall, 19 bottles of beer...take nineteen down and pass 'em around, there's no more bottles of beeeeeer on the waaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaall."

KRY: the gold sector's equivalent of pornography

You just can't help but look.

The advice remains the same on this stock:

Do not go long KRY

Do not go short KRY

Simply AVOID KRY

It's not a serious company. Leave it to the arch-insiders and the greenhorns. If you think this is a way to play South America, miners, gold or a combo thereof, this blog is not the right place for you.

"...35 bottles of beer on the wall, 35 bottles of beer...put one back up and pump it some more, there's 36 bottles of beer on the waaaaaaaaaaaaaaaaaaaaaaaaaaall..."


Related Posts
As a reminder, this is the only thing you need to know about Crystallex
Crystallex (KRY): I'm not kidding you...just "avoid"

Oh...I wonder where that might be?

Chávez today:

"Next year, we are going to duplicate gold production. We are taking back some concessions that were given out by previous governments and are still valid for some rich guys that take the gold away, exploiting the miners."

He's making a big speech on Thursday January 1st to commemorate the 50th anniversary of the Cuban revolution. It's gonna be a doozie, methinks.

Two stories on BN Americas tonight about Las Cristinas, Brisas. GRZ, KRY and RML.v

If any of the following surprises you I just hope you've never heard of the place.

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Government to install gold refinery at Las Cristinas - Venezuela
Thursday, December 18, 2008 18:10 (GMT-0400)

Venezuela's basic industries and mining ministry (Mibam) plans to install a gold refinery near the Las Cristinas gold project, a ministry official told BNamericas.

"The idea is to industrialize gold production because the Venezuelan state is taking over those areas along with [the industrialization] that Rusoro will carry out," the official said.

The initiative came about because the Venezuelan government estimates that the area holds reserves of close to 41,700oz of the yellow metal, according to the official.

The refinery calls for the creation of Minera Venrus, a JV with Rusoro Mining (TSX-V: RML), that will be in charge of exploration, mining and marketing the gold, and will also be responsible for building facilities and the metal processing plants, the official said.

Las Cristinas has 464Mt grading 1.13g/t gold or 16.9Moz contained in proven and probable reserves, in addition to 629Mt grading 1.03g/t gold or 20.8Moz contained in the measured and indicated categories.

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Rusoro keen on developing Brisas, Las Cristinas together - Venezuela

Thursday, December 18, 2008 15:48 (GMT-04

On Wednesday (Dec 17) an official with Venezuela's mines and basic industries ministry (Mibam) told BNamericas the ministry has finally decided to rescind the mining concessions of Gold Reserve on Brisas and Crystallex International's (TSX: KRY) rights for Las Cristinas in order to develop the two projects with Rusoro.

"I can't confirm that," Rusoro president George Salamis said in a Wednesday telephone interview following the report. "All I can say is that the government is very happy with what we have done on other projects." As Russian company Rusoro Mining (TSX-V: RML) enters litigation against Gold Reserve (TSX: GRZ) over a recently launched takeover bid by the former, the company said it is eager to one day develop Gold Reserve's Brisas project in Venezuela and the adjacent Las Cristinas property together, and ultimately become the premiere miner in the country.

He added, however, that developing Las Cristinas and Brisas together "would make sense from an operational perspective. It's the same ore body."

Salamis specified, however, that for the time being Rusoro is concentrating on taking over Gold Reserve and only then would turn its attention to developing Brisas.

Rusoro launched an unsolicited all-stock takeover bid for Gold Reserve on December 15 after having sent a non-binding letter of intent to acquire the miner in August, which was rejected.

"We tried to do things in a friendly manner but enough is enough," Salamis said. "We have to resolve the situation in kilometer 88 [the so-called mining district where Brisas and Las Cristinas are located]."

"We will be the premiere mining company [in Venezuela] and that's why we started the company in the first place," he added.

Las Cristinas has 464Mt grading 1.13g/t gold or 16.9Moz contained in proven and probable reserves, in addition to 629Mt grading 1.03g/t gold or 20.8Moz contained in the measured and indicated categories.

The Brisas project holds proven and probable reserves of 10.2Moz of gold and 1.39Blb (630,039t) copper.

To read the full interview with Salamis, see this week's Perspectives, to be sent to subscribers on Friday

to clear some things up

Of all continued bile and stupidity received from KRY longs today over this note published Friday, there was one mail that passed the barriers of acceptability. This from "Tom F":

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I can't find a thing to confirm this. Can you help? Don't mean to make you mad but is this for real? If it is I am sorry for doubting you. But for sake of your creditabilty you better figure out a way to confirm your report. Thanks, Tom

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So let's confirm three things

1. Surprisingly the word "creditability" is now recognized in some American English dictionaries, which just makes me reflect on the continued bastardization of the English language.

2. I can "confirm this" report. It is real. Thanks for asking. But funnily enough, all those headless chickens that have been getting themselves into a froth about the previous post on Venezuela didn't bother to try and "confirm this" themselves. According to the author of the note he has had just one person asking him to verify. DYODD.

3. Getting a warning on credibility from a KRY long is like getting a ticking off about human rights from Augusto Pinochet.

As a reminder, this is the only thing you need to know about Crystallex

Ask the KRY directors and the shameless promoters of the company one simple question: Where did the money go?

Rusoro, Gold Reserve, Crystallex, Gold, Venezuela, Brisas, Las Cristinas, Bloomberg and Inca Kola News

Andre Agapov and a serious bow-tie

Yeah, a whole range of fave raves in the title line, and all because of this little report out of (the rapidly improving) Bloomie Venezuela. They even get to name a decent source of information for once. I may have missed on the Ecuador story (and I'll write a longer post on that tomorrow), but this one is coming to pass as seen.

This is off the wires, so no link as yet (but it's kosher). Once the story makes it to the open internet I'll add.

UPDATE MONDAY AM: Rusoro bids for GRZ. Still doubt?

Enjoy.

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Venezuela Gold Projects May Be Joined, Rusoro Says (Update1)
2008-12-12 23:42:33.830 GMT

(Adds Gold Reserve comments from 11th paragraph.)

By Steven Bodzin
Dec. 12 (Bloomberg) -- Two Venezuelan mines containing about $25 billion worth of gold most likely will be developed as a single project, according to Andre Agapov, chief executive officer of Rusoro Mining Ltd.

The projects, known as Las Cristinas and Brisas and controlled by Crystallex International Corp. and Gold Reserve Inc., are “one ore body, and it would be naive to think it would be more than one company” involved in development, Agapov said in a telephone interview from London. He suggested a Russian miner would get the job.

The mines have been in limbo since both Toronto-based Crystallex and Gold Reserve of Spokane, Washington, failed toget needed environmental permits in April. On Nov. 14, Agapov said that Rusoro was Venezuela’s “preferred partner” to develop the site. Agapov considers his Vancouver-based company Russian because he and the other founders are Russian.

“Only a Russian mining company can afford” to remedy problems at the site, Agapov said today. “Which company, I don’t know, but it’s the only way it’s going to be resolved,” he said. “I see resolution in the first half of 2009.”

Government Take-Over

Venezuela’s Mining and Basic Industries Minister Rodolfo Sanz said Nov. 5 that the country would take over the mines and administer them.

Rusoro, which has taken part in Russian diplomatic} missions to Venezuela, already operates the country’s Choco10 mine.

At Las Cristinas and Brisas, “it would be naive to believe it will be two ownerships, two permits. That will never work” for Venezuela’s mining and environment ministries, Agapov said today.

Together, the two mines contain more than 31 million ounces of proven and probable reserves, valued at more than $25 billion at today’s price.

Gold futures for February delivery fell $6.10, or 0.7 percent, to $820.50 an ounce in New York. The price reached a record of $1,033.90 on March 17.

Rusoro gained 5 cents, or 16 percent, to 36 Canadian cents in Toronto Stock Exchange trading.

Agapov declined to comment on a report on mining blog Inca Kola News that his company may try to take over Gold Reserve after being rebuffed in September. “They’re perfectly positioned for some transaction,” he said. “I don’t know if it will happen or not. It’s the end of the year. Maybe some brave ones will step in.”

Shares Jump

Gold Reserve President Douglas Belanger said he knew nothing about any attempt to take over his company and said today’s 30 percent surge in the share price was most likely the result of rising gold prices and the stock being worth half the company’s breakup value.

“There are no bids, not that we’re aware of,” he said. “We wouldn’t comment anyway.”

Gold Reserve rose 9 cents to 39 cents. It has plunged 92 percent in the past year.

Belanger said he recently converted non-trading Class B shares into sellable Class A shares because the stock’s value had dropped enough that he could trade out of the Class B stock without tax liability.

“It was just simple accounting, a chance to clean something up that had been around for years,” he said in a phone interview. “If I had converted them at $10, I would have had about $9.70 taxable income. I just took advantage of the low price.”

He also said the company’s debt remains outstanding and hasn’t been bought back. Crystallex spokesman Richard Marshall didn’t immediately return a call seeking comment. The stock declined 1 cent, or 7.1 percent, to 13 cents in New York. It has fallen 94 percent in the past year.

Related Post
Why Gold Reserve (GRZ) may about about to sell out to Rusoro (RML.v)

No more bottles of beer on the wall

NEW YORK, NY--(MARKET WIRE)--Dec 8, 2008 -- On December 8, 2008, the law firm of Sarraf Gentile LLP commenced a securities fraud class action lawsuit on behalf of those investors who acquired the securities of Crystallex International Corporation ("Crystallex" or the "Company") (AMEX:KRY - News) during the period July 28, 2005 to April 30, 2008, inclusive (the "Class Period"). The lawsuit is pending in the United States District Court for the Southern District of New York and names as defendants Crystallex and certain of its former officers.

According to the complaint, the defendants made several statements during the Class Period about the Company's Las Cristinas Gold Project located in Sifontes, Venezuela, and that the issuance of the required Venezuelan government permit in connection with that project was imminent. The complaint alleges, however, that during the Class Period defendants did not have a reasonable expectation that the Company would receive the required permit and that on April 30, 2008, the permit was, in fact, denied. On news that the permit was denied, the complaint alleges, the Company's stock fell roughly from a closing price of $1.68 on April 29, 2008, to a closing price of $0.91on April 30, 2008, on heavy volume.

continues here

Krynal Tap

Typical Crystallex shareholder....or maybe even board member

Tonight we celebrate our hero company Crystallex (KRY) and its eleven bottles of beer left on the waaaaall (well....11.8...who's counting?).

With apologies to FS for adapting (ok...stealing) his original idea (though used on a different theme). We join the scene as a Crystallex shareholder explains the benefit of an investment in his beloved stock to a normal person.

KRY shareholder: The numbers all go to eleven. Look, right across the board, eleven, eleven, eleven and...

Normal shareholder: Oh, I see. And most stocks go up to ten?

KRY shareholder: Exactly.

Normal shareholder: Does that mean it's better? Is it any more expensive?

KRY shareholder: Well, it's one better, isn't it? It's not ten. You see, most blokes, you know, will be trading at ten. You're on ten here, all the way up, all the way up, all the way up, you're on ten on your stocks.Where can you go from there? Where?

Normal shareholder: I don't know.

KRY shareholder: Nowhere. Exactly. What we do is, if we need that extra push over the cliff, you know what we do?

Normal shareholder: Put it up to eleven.

KRY shareholder: Eleven. Exactly. One bigger.

Normal shareholder: Why don't you just make ten bigger and make ten be the top number and make that a little better?

KRY shareholder: [pause] KRY's at eleven.

Stop the world! IKN makes Canada's Financial Post!

Now who is that insightful blogger they be talkin' bout, huh?

UPDATE: I've had two mails so far so let's nip this in the bud now. No, that photo is not me. I just plugged "shocked expression" into Google images and picked that one.

Chart of the day is............

....a table that compares how much Crystallex (KRY) has spent on development of Las Cristinas and how much money the company has received in equity sales since March 2004.

(click to enlarge)

Question for Robert Fung: Where has all the money gone?

Crystallex loses Las Cristinas: Surprised?

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.