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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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Message: Resolution theory for KRY

Resolution theory for KRY

posted on Apr 06, 2010 09:33AM

Mr. Fung was the one that proposed the sale of Gold bonds for future production to Venezuela. This would allow Venezuela to get instant cash for their gold resource, and allow KRY to mine the property.

In the past Venezuela has not thought of anything outside the box in financing. In the oil sector the standard deal exist for bidding on new projects, where a royality would be paid. This would only result in income for Venezuela if the property is producing money. Issuing oil bonds for furture production Venezuela could of freed more money out of their oil projects.

In addition, we also do not see any of this financing or sale of Gold bonds in other gold mining areas.

An almost about face with the treatment of Crystallex by the Venezuela government. Crystallex had not heard anything from Sanz or the Venezuela government in almost 2 years. Then all of a sudden Sanz makes a statement about Gold bonds and mentions KRY at the end. Very interesting.

In Conclusion, Mr. Fung had mention KRy was proposing an number of alternative to Venezuela to help release the value of Las Cristinas property faster than arbitration. With many ideas or alternative put forward in a recent statement by KRY, this unique idea of gold bonds may fall within the JV mentioned by KRY. Furthermore, Venezuela previous attempts to attain more money from Gold mining were met with resistance by the investment community with 70% of gold sales to the government. This this type of idea seems out of character with Venezuela, I would suspect it came from some place else and Mr. Fung suggested it.

JUst my humble opinion.

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