Crystallex International Corporation (TSX:KRY)(NYSE Amex:KRY) announced today that it has received a letter from the Corporacion Venezolana de Guayana that states that the Company's Mine Operating Contract for the Las Cristinas Project in Bolivar State, Venezuela, has been "unilaterally terminated" by the CVG.
The letter also enclosed a copy of a resolution passed by the CVG on February 3, 2011 which states that the MOC is unilaterally terminated. The resolution cites, as the basis for the termination of the MOC, Crystallex's lack of activity to progress the Las Cristinas Project for more than one year and "… for reasons of opportunity and convenience".
Crystallex has fully complied with all its obligations under the MOC and has advanced Las Cristinas to a "shovel ready" state while awaiting the issuance of the Authorization to Affect Natural Resources (the "Permit") from the Ministry of Environment and Natural Resources ("MinAmb"). In June, 2007, the CVG confirmed that the approval of the Crystallex Las Cristinas Environmental Impact Study ("EIS"), the posting of the construction guarantee bond and the payment of the environmental disturbance taxes represented the final and conclusive step in the procedure for the issuance of the Permit required to construct the Las Cristinas Project. Notwithstanding Crystallex's fulfillment of the conditions to receive the Permit, MinAmb denied the request for the Permit in April 2008. Despite the Company's compliance with the MOC requirements and the CVG's confirmation in August 2010 that the MOC was in full force and effect, to date the Permit to allow project construction to commence has not been issued.
Crystallex is reviewing its position in light of this correspondence and is considering all steps necessary to protect its investment on behalf of all its stakeholders including the filing of the International Arbitration claim outlined in a Notification of Dispute served by the Company on the Venezuelan Government in November 2008.
Source: Crystallex International Corporation