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Crystallex International Corporation Announces CDN$35,000,000 Bought Deal Financing
Jun 9, 2010 7:18:00 AM
TORONTO, ONTARIO -- (MARKET WIRE) -- 06/09/10 -- Crystallex International Corporation (TSX: KRY)(NYSE Amex: KRY) ("Crystallex" or the "Company") announced today it has entered into an agreement with a syndicate of underwriters ("the Underwriters"). Under the agreement, the syndicate has agreed to purchase, on a bought deal basis, 70,000,000 units (the "Units"), each Unit comprised of one common share (each, a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant") of the Company, at a price of CDN$0.50 per Unit (the "Offering Price") for gross proceeds to Crystallex of CDN$35,000,000. Each Warrant will entitle the holder to acquire one Common Share at a price of CDN$0.70 for a period of one year following the date of issue.
The Company will grant the Underwriters an over-allotment option to purchase additional Units, Common Shares and/or Warrants, equal to, in the aggregate, 15% of the total number of Units sold pursuant to the offering, exercisable with respect to the Units at the Offering Price and with respect to Common Shares and Warrants at the price allocated to such Common Shares and Warrants in the Final Prospectus, exercisable in whole or in part at any time on or prior to the date that is 30 days following the closing of the offering. If this option is exercised in full, the gross proceeds to Crystallex will be CDN$40,250,000.
The Company expects to file a Canadian Preliminary Short Form Prospectus with the applicable securities regulatory authorities on June 14, 2010.
The net proceeds from the offering are intended to be used for Las Cristinas project related expenses, debt service and for general working capital purposes.
The offering is subject to certain customary conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Toronto Stock Exchange, the NYSE Amex and the applicable securities regulatory authorities. The offering is expected to close on or about June 30, 2010.
quiet accumulation
I'm not quit sure what to think right now. Would love to see us climb back towards high of day today at .53.
.485 - Bottom in?
"If they can get a permit it's a slam dunk," the analyst said. "It's a very simple project to build and operate, with big production potential." The Chinese may have the political clout to expedite the process, the analyst said but he remains skeptical, noting that the project has been plagued by problems for several years.
Marshall of Crystallex said he expects investors to gain confidence as "[the project] advances and milestones are achieved."
Already made up my mind... will DCA down. I am going to try and build a fairly large position here.
So much doubt and skepticism on KRY provides a great opportunity here. FYI - Sell when Kramer starts pumping it again...lol
WOW... someone likes the deal!
I seen that as well MWM. There was one a couple days age PM for over 500,000 shares and one in AH yesterday for almost 600,000. Something is definetly up here.
09:12:00 1000000 0.53 + NASD ADF T tt (F)
09:06:30 300 0.5295 + OTC bb T (F)
09:06:18 1800 0.5295 + OTC bb T (F)
09:06:18 700 0.5295 + OTC bb T (F)
09:06:18 3000 0.5278 - OTC bb T (F)
09:03:21 100 0.53 + PAC T (F)
09:01:30 200 0.53 + PAC T (F)
09:01:03 100 0.53 + PAC bb T (F)
Posted by: copleybmt Date: Tuesday, June 08, 2010 12:40:28 AM
In reply to: coinmaker who wrote msg# 19484 Post # of 19488
KRY - 8,000,000 oz of gold X $100 = 800,000,000 divided by O/S = potential buyout price. $2.50 stock price approximatly.
Now if they go into production with gold being much higher in price this could get very interesting... as in 5-10 dollar stock.
What do you guys think after a year or two into production?
You like the news? Seems to put these guys back in play.
From quick DD is 350 OS fully Diluted
-$55MM S Equity (+250MM if they get to add back full value of write down so far)
-Huge Resource 20Moz including all categories P. P. & Inferred
-large debt 91MM approx
Just bought starter at .543... think it may get back to .40 and will load down there.
Crystallex Forms Strategic Partnership With the Resource Subsidiary of China Railway Engineering Corporation, the World's Largest Construction and Engineering Company, for the Las CristinasExplore related topics
Crystallex International Corporation Story Quotes Comments Screener Alert Email Print
TORONTO, ONTARIO, Jun 7, 2010 (Marketwire via COMTEX) -- Crystallex International Corporation /quotes/comstock/11t!kry (CA:KRY 0.55, 0.00, 0.00%) /quotes/comstock/14*!kry/quotes/nls/kry (KRY 0.54, -0.02, -3.57%) 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$0.40 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$0.40 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 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).
For further details of the Reserves and Resources, see Crystallex's 2009 Annual Information Form filed on SEDAR at www.sedar.com.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including: statements relating to the expected timing of completion of the transactions contemplated by the Agreement, estimated reserves and resources at Las Cristinas; anticipated results of drilling programs, feasibility studies or other analyses; the potential to increase reserves and expand production, at Las Cristinas; Crystallex's projected construction and production schedule, and cost and production estimates, for Las Cristinas; and management's statements regarding its expectations regarding mining in Venezuela. Forward-looking statements are based on estimates and assumptions made by Crystallex in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Crystallex believes are appropriate in the circumstances. Many factors could cause Crystallex's actual results, performance or achievements to differ materially from those expressed or implied by the forward looking statements, including: the conditions to the transactions contemplated by the Agreement not being satisfied, gold price volatility; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated production, between actual and estimated reserves, and between actual and estimated metallurgical recoveries; mining operational risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; speculative nature of gold exploration; dilution; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property. These factors and others that could affect Crystallex's forward-looking statements are discussed in greater detail in the section entitled "Risk Factors" in Crystallex's Annual Information Form (which is included in the Annual Report on Form 40-F that Crystallex files with the United States Securities and Exchange Commission (the "SEC") and elsewhere in documents filed from time to time with the Canadian provincial securities regulators, the SEC and other regulatory authorities. These factors should be considered carefully, and persons reviewing this press release should not place undue reliance on forward-looking statements. Crystallex has no intention and undertakes no obligation to update or revise any forward-looking statements in this press release, except as required by law.
SOURCE: Crystallex International Corporation
Investor Relations Contact:
Crystallex International Corporation
Richard Marshall, VP
(800) 738-1577
info@crystallex.com
www.crystallex.com
Copyright (C) 2010 Marketwire. All rights reserved.
KRY, a listed gold company, is another stock that should benefit from stronger gold prices. KRY pulled back modestly on Friday and closed at $0.54. I want to wait for the price to signal an end to its recent pullback. A positive close with good volume is the reversal sign people are waiting for.
KRY, which is listed on AMEX, is one stock that I am watching which shows precisely that potential. Looking at the 20-day and 50-day moving averages, people can see that the stock has been in a good uptrend and there are signs that the rally could pick up momentum.
Someone bought 500,000 shares at .57 in pre market this morning! Something is up!
really not sure whats going on with kry. i bought this in november at .22 because the chart looked good but all i keep reading is bad news. everything from hugo chavez is going to take it over to the company is going under but the chart looks good to me so im really not sure what to tell you.
What do we have here? a mining stock that is on the verge of collapse? sorry just trying to piece this together. not sure what the hearing are about. any help would be appreciated. strong looking day and chart. looks like resistance is clear to $1.20. caught my eye to say the least.Just looking for some insight for those that have been following this for a while. Thanks again
Maybe we braeak out today?
Looks good and iMO close to a breakout.
Someone must know something good ... based on recent trading.
The only dependable thing has been the SLOW clocks running on Veneszuealian time. Hopefully the delays will make more dips to buy more in future.
imho
Thanks I never saw that and I wish I added here last week.
Heads up! Some lively late Friday afternoon action going on in KRY at least on the U.S. side of the fence.
Are you adding KRY?
Looks like you had a hell of a ride on POWN. Nice. I had one in MMG. I think PMU will be the same.
Thanks for the tips. I'll look into them for sure.
I loaded up POWN, SFMI, WNMX and AVNE. I also took a chance with THRR for a "do or die" one time deal.
WNMX had a monster conference call today but few know about it... they NEED to PROVE themselves or NOBODY will believe anything (they claim proof will come on pinksheets.com etc SOON). IF it pans out it could be good.
Actually the ONLY stock I could strongly recommend (becasue it is PROVEN) is POWN. Big news may come on April 16th-19th. News is coming but nobody knows WHAT or if it pertains to POWN or some other Stan Lee activity. Stan Lee says he has 2 surprises on those days. That is all anyone knows. Watch for Disney to gobble up POWN someday like they merged with Marvel but that may come later. They also have 3 movie deals with Disney and we are waiting for the PRs on them from Disney when they are to be released. One is supposed to be a big movie (maybe more).
Good Luck!
I hope I get some money SOON to do a BIG average down on KRY.
All I need is for Hugo to delay KRY until May 1st and I will have a boat load. Maybe I will miss it but I got enough KRY to make some money.
imho
I am holding and glad I averaged down. So have you looked at CALVF and PMU? I nhave been adding both.
The ticker price changes but this is always a Jackpot or No Jackpot play.
If we get the Jackpot then it could be very very good or even better if we are lucky.
Good luck.... I think Jackpot is very possible (I have NO inside info... just my gut feeling)
imho
Thursday was great and hopefully it continues.
Venezuela may borrow against future gold production
March 31, 2010 By: Bloomberg News
Venezuela’s central bank is considering selling a bond backed by future gold production this year, Mining Minister Rodolfo Sanz said.
The size of a possible sale is being studied, Sanz told reporters today in Caracas before a meeting between Venezuelan and Russian ministers and business executives.
Venezuela has turned to borrowing against future output of oil and metals after its bond yields climbed. China Development Bank Corp. loaned the country $8 billion, which will be paid back with oil, and provided a $1 billion line of credit, payable with iron ore.
The South American country is seeking partners to develop the Las Cristinas gold deposit, one of the world’s biggest undeveloped deposits, Sanz said. Toronto-based Crystallex International Corp., which has a license to mine part of the site, is still being considered as a potential partner, he said.
President Hugo Chavez said last year that a joint venture between Rusoro Mining Corp. and the Venezuelan government would develop the site.
Chavez has been diagnosed with pancreatic cancer.
The news is just leaking out now despite his efforts to keep it hush hush. That's why the pps is taking off.
Once he's dead and gone, KRY will get their permit.
Time to load up now while it's still under a buck.
When that bastard croaks and the news hits the wires, this stock will EXPLODE. $5-$10 EASY target!
You heard it here first.
reference KRY
For Further Information:
Investor Relations Contact: Richard Marshall, VP at (800) 738-1577
Visit us on the Internet: http://www.crystallex.com or Email us at: info@crystallex.com
moved up a bit today..... up 9.68%
imho
I once held 40,000 shares. Sold late last year. Held this stock at one point for almost two years. This stock has the greatest potential to make some coin especially in the .30 cent range. Very little downside now.
It sounds like negotiations are ongoing if not I believe you would have seen arbitration already.
If I free up some money I'm gonna get back in ASAP. Look for a resolution before June IMO. Good luck all.
$7 would be nice! (eom)
Everyone is wondering who is accumulating at 0.315 imho
Most people are scarred imho.
We can only hope it is someone who knows something positive imho.
And I hope it is SOON... this is rediculus waiting.
If we wait long enough then hopefully Hugo will be tossed out or voted out. Wouldn't that be a hoot - then we go to $20+ in a heart beat hahahaha imho
I once hoped for $16-$20 (4 years ago before Hugo ruined VZ) but now my best hope is $7 but who knows...?? It is my HOPE... not a prediction. I can't predict KRY at all... that is a proven fact. We can only HOPE that Fung can get us the $2 billion he mentioned once. That would be enough so that we could all GET OUT and leave this insanity behind.
My calculation is simple;
300 million shares divided into $2.1 billion = $7
My fear is that in the end Fung may just cut that in half to "get out' and at this point that would be fine with me ($3.50 per share)... or bankruptsy or arbitration or whatever?? i just want OUT of VZ.
Hopefully VZ will return in the future as the wonderful nation it was in the past... but we got to move on not wollow in the mud like Hugo and his Red Shirts. The People of VZ must suffer under the guns of Hugo but the rest of us in the Free World can move forward with other things.... Hugo will NOT stop us!
imho
$$$$$$$$$$$$$$$$$$$$$$ soon
Hundreds of millions of people have been slaughtered under the Satanic banners of Marxism! Savage Capitalism without moral constraints is also wrong but less murderous. One wants money .. Marxism has proven it wants BLOOD and wants people's SOULS to be barren of faith, hope and charity - leaving them as worker bees living only for a hive that one day will be dust!
Hugo is a disgrace of a human being! A pig of a man! And he is insane!
All we want is to do work to get gold and make money for ourselves and the workers who mine the gold. The VZ people can use the money to feed thier poor or clean up the environmental mess they caused by burning all that OIL.
imho
"stealing natural resources from natives and contaminate their rivers."
I think you better do a little more homework on that statement.
The company isn't stealing or contaminating anything.
You sould take a look at who is really stealing and contaminating.
It sure isnt this company.
Este mono esta pinchao
Let's pray for a PEACEFUL change in government in VZ.
Maybe Hugo will just announce on his live TV (with all other TV channels being censored and blocked by Hugo) this message about himself and his administration: "No Mas!"
Then go away and stop bothering others with his insanity.
imho
Chavez and his dirty red shirt followers stand with SATAN against GOD and His Church and the PEOPLE of Veneszuela....
I stand with GOD and His Church and the PEOPLE of Venezuela!
This is bigger than invested money.
Those who stand with God always have HOPE
Those who wear the diry commie red shirts will join the red devils in hell
Chavez is clearly INSANE - the people of VZ voted for him to get money - but now the people pay the price! Oil wealth being squandered by the red shirted Marxist elites on military weapons, VZ becoming a 4th world nation, and gold laying stagnant in the ground. While Chavez makes incoherent rantings and shames VZ in front of the world!
imho
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