KRY deal - Great for SDRGThis is a HUGE deal for KRY, showing that Bob Fung gets things DONE!
No need to respond to the jerks on this board, who can't see that the entire sector has gotten killed except for a handful of the very largest companies.
SDRG is moving forward very rapidly in both China and Mexico. The China drilling program is rocketing ahead, with drilling results expected imminently. David Wahl is going to China next month to start the Laopandao 43-101. Engineering for the tails pond and mine is ongoing, with the target of production in the fourth quarter. And the target is to finalize their TSX application in August. Plus, now that this deal with KRY is done, my guess is Bob Fung will have much more time to devote to SDRG.
At this ridiculous price, particularly with silver and gold and the verge of exploding, I have never felt more confident about SDRG stock.
yoyo
Crystallex Forms Strategic Partnership With the Resource Subsidiary of China Railway Engineering Corporation, the World's Largest Construction and Engineering Company, for the Las Cristinas
Press Release Source: Crystallex International Corporation On Monday June 7, 2010, 7:00 am EDT
TORONTO, ONTARIO--(Marketwire - 06/07/10) - Crystallex International Corporation (TSX:KRY - News)(AMEX:KRY - News) announced today that it has signed a binding agreement (the "Agreement") with China Railway Resources Group Co. Ltd. ("CRRC") to create a strategic partnership for the development of the Las Cristinas gold project in Bolivar State, Venezuela ("Las Cristinas"). China Railway Engineering Corporation ("CREC") is the world's largest contracting and engineering company and one of the world's 150 largest companies. It is one of China's largest state-owned companies with the majority of its shares held by the People's Republic of China.
CRRC and Crystallex have met with the Government of Venezuela to apprise them of this strategic partnership and are very pleased by the Government of Venezuela's expression of support. Both Crystallex and CRRC are working closely with Venezuelan officials to obtain the approvals and permits required to bring Las Cristinas into production. The advancement of Las Cristinas will benefit all stakeholders and especially the people of Venezuela, particularly in Bolivar State.
Under the terms of the Agreement, CRRC is leading the efforts of the strategic partnership to unblock the stalled environmental permitting process for Las Cristinas and will provide the necessary project capital to develop the project to commercial production at an optimized mining rate.
Upon completion of the transactions contemplated by the Agreement, Crystallex will hold a one-third fully carried interest in the Las Cristinas Joint Venture and CRRC will have a two-thirds interest. Crystallex will contribute the Las Cristinas Mine Operating Contract, Feasibility Study, all design and engineering already completed by Crystallex and other project assets. CRRC will provide the necessary construction and operating capital to fund project development, optimized expansion and operation and will be responsible for construction of the project. Crystallex will pay for its one-third carried interest of the capital costs provided by CRRC from its share of future cash flows from the project. In addition, CRRC will assist Crystallex to retire the outstanding noteholders' obligations; will provide a construction guarantee; and has agreed to make an equity investment in Crystallex following closing of the transactions, at a share price based on the then prevailing market price of the common shares of Crystallex.
CRRC had previously advanced Crystallex US$2.5 million during the negotiation of this Agreement. Subject to requisite regulatory and shareholder approvals, this US$2.5 million advance is convertible into common shares of Crystallex at a price of Cdn
.40 per share. CRRC shall also have a onetime option to convert a portion of funds advanced to Crystallex to satisfy its obligation to the noteholders into common shares of Crystallex at a price of Cdn
.40 per share for a period of five years from the date of funding, provided that CRRC and its affiliates shall beneficially own not more than 19.9% of the outstanding common shares of Crystallex after giving effect to such conversion. CRRC shall have the right to maintain its pro rata equity interest in Crystallex to a maximum of 19.9% of the outstanding shares.
The closing of the transactions contemplated by the Agreement is subject to the applicable regulatory, government and shareholder approvals, satisfaction or waiver of all conditions contained in the Agreement and the execution and delivery of all closing documents including final definitive agreements which are being prepared and are expected to be completed before July 30, 2010. A meeting of Crystallex's shareholders to approve the transactions is expected to be held in August, 2010 with closing expected in the third quarter of 2010. A copy of the Agreement will be filed on https://www.sedar.com/ within 24 hours of this release.
Crystallex's financial advisors are Macquarie Capital Markets Canada Ltd., GMP Securities L.P. and Kingsway International Holdings Limited and its legal advisors are Cassels Brock & Blackwell LLP.
About CREC
CREC runs a spectrum of businesses covering surveying and designing, construction and installation, manufacturing, R&D, technical consulting, capital management as well as international economic and trade activities. CREC is the largest civil construction enterprise in the world, and the largest Asian and Chinese railway, road and tunnel construction contractor. It has a leading position in China's construction market, and participates in many large-scale infrastructure projects overseas (especially in countries in Southeast Asia and Africa).
CREC is currently constructing a US$7.5 billion railway project in Venezuela linking southwestern Cojedes State and the eastern Anzoategui State.
CRRC is the wholly-owned resource subsidiary of CREC with mining projects in Africa, Australia, Central Asia, Ecuador and Panama.
About Crystallex
Crystallex International Corporation is a Canadian based company, whose principal asset is its interest in the Las Cristinas gold project located in Bolivar State, Venezuela. Crystallex shares trade on TSX (symbol: KRY) and NYSE-Amex (symbol: KRY).
Las Cristinas gold project
An updated Technical Report filed on SEDAR by Crystallex in November 2007 estimated the Las Cristinas gold Reserves and Resources as follows:
Gold Reserves:
Proven and Probable Reserves were estimated at 16.86 million ounces of gold (464 million tonnes with an average gold grade of 1.13g/t) based on a US$550 gold price assumption. The reserve estimate was comprised of 113 million tonnes at a gold grade of 1.24g/t (4.48 million ounces) in Proven Reserves and 351 million tonnes at a grade of 1.10g/t (12.38 million ounces) in Probable Reserves.
Gold Resources:
Measured and Indicated Resources were estimated at 20.76 million ounces (629 million tonnes with an average gold grade of 1.03g/t, which comprises 146 million tonnes at a gold grade of 1.14g/t (5.38 million ounces) in Measured Resources and 483 million tonnes at a grade of 0.99g/t (15.38 million ounces) in Indicated Resources.
Inferred Resources, which did not contribute towards the Proven and Probable Reserves, were estimated at 6.28 million ounces (230 million tonnes at an average gold grade of 0.85g/t).