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.....

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?

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.

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.