UPDATE 1-Crystallex says confused on Las Cristinas move
April 30th, 2008 | by admin |TORONTO, April 30 (Reuters) - Crystallex International Corp(KRY.TO: Quote, Profile, Research) said on Wednesday it had become aware that Venezuela’senvironment ministry had denied an exploration request in thearea of its Las Cristinas mine, a move the miner said seems inconflict with its environmental approvals for the project.
Crystallex’s shares, which were halted prior to theannouncement, lost more than half their value when they resumedtrading on Wednesday.
By late morning, the stock was down 86 Canadian cents at 75Canadian cents on the Toronto Stock Exchange.
The Toronto-based company, which has for years been tryingto get Venezuelan government approval to mine the massive golddeposit, said the ministry had issued a communication to thestate-owned company that holds the Las Cristinas concessionsdenying the request.
“The communication … appears to be in conflict with theLas Cristinas (environmental) approval, construction compliancebond request and environmental tax request issued by the(ministry), and the communication appears to be in oppositionto all mineral mining in the Imataca region,” Crystallex saidin a statement.
The company said it would respond to the matter vigorouslyto protect the interests of its shareholders.
Crystallex has struggled to get the mine to productionsince winning a contract in 2002 to develop the Las Cristinasdeposit, which has proven and probable reserves of 14 millionounces of gold.
In January, the company said it had received approval forits environmental impact study for the project, and was nowjust waiting for the permit for mine construction from theministry of environment. (Reporting by Cameron French; editing by Rob Wilson)
