Crystallex International Corp fka KRY

[MWM]

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.