Looks like this will be in the courts for years, both in Venezuela and Canada if need be. An interesting question might be that if KRY (or whoever) finally does get to build and operate the mine, how much of the profits will they get to keep. Most companies would probably just sit back and wait for the courts to do their thing,...which could take 1, 2, 5 years? a decade?
Vannessa clarifies Las Cristinas position
TSX: VVV
OTC-BB: VNVNF
Berlin: VVT - WKN 914781
VANCOUVER, Sept. 9 /CNW/ - Vannessa has received a number of inquiries
with respect to reports published by Reuters, The Mining Web and others, which
state that the CVG has chosen Crystallex International Corp. to develop the
Las Cristinas deposit in Venezuela. The selection was made by the CVG, a State
Corporation, and not by the Venezuelan Government as stated in Crystallex's
news release of September 8, 2002. Vannessa wishes to inform its shareholders,
and any other party who is considering to invest in this development, of the
following facts which were either disregarded or incompletely touched on in
the statements made:
1) Minca, Vannessa's subsidiary through its 100% shareholding in Vannessa
de Venezuela C.A., is the holder of the mining permit, the
environmental permit and a contract with the CVG for the Las Cristinas
Deposit and will vigorously defend its rights under Venezuelan and
International Law.
2) The CVG has tried to cancel its contract with Minca, but that action
and other attempts to take over the Las Cristinas deposit are subject
to several ongoing court actions and the CVG is well aware that it
cannot award any new contract for the Las Cristinas concessions until
rulings in all of these actions have been made. It is for that reason,
that the CVG has merely selected Crystallex as its choice as a partner
and has not awarded any contract. An award at this time would show a
blatant disregard for the Venezuelan Supreme Court and the Attorney
Generals Office which are still dealing with these matters, as well as
the National Assembly, which only a week ago began new investigations
into irregularities concerning the CVG/Minca dispute. Some of these
investigations are dealing with the large-scale attempts, at huge
expense by third parties, to discredit and defame Minca and Vannessa
and thereby aid in the delay of a fair and negotiated settlement of
the dispute.
3) The current announcement can only be viewed as a desperate attempt to
complete some form of arrangement prior to the start-up of court
proceedings after the summer recess. The rush of the announcement is
obvious when looking back at previous CVG declarations that "a number
of large mining companies have shown interest and will be considered
for the project" and "only companies with 2 Million ounces of
production levels will be considered". Suddenly, those conditions
appear to no longer apply and the CVG, who takes weeks to answer
simple requests, seems to have reviewed a number of bids and made a
major decision on the country's largest gold deposit in just a few
days.
4) Very unsettling for Vannessa is the fact that the people of the
region, who could have benefited for the last 12 months from
Vannessa's first year US$ 50 Mill. development proposal made in
July 2001, are once again being misled with the promise of imminent
development, housing and social benefits. The CVG and its proposed
future partner Crystallex know very well that no development can take
place without clear title, exploration work, feasibility studies,
mining licence, and environmental licence. Also, financing
arrangements are impossible to make without a contract in place,
without economic viability for their proposed US$ 500 Mill.
development, and given that no title will be issued to Crystallex.
These promises can only be intended to later put the blame on Minca
when the legal proceedings, which are now in progress, eventually
delay or derail the plans which are currently being proposed.
5) Of interest is the comment of the President of Crystallex de Venezuela
who stated that he "fears no claim before the Venezuelan Court because
they cannot affect title to the deposit". It is Vannessa's contention
that all or any of the court decisions will definitely affect title.
There are also numerous hints of Crystallex's "connections" and
references to "powerful Venezuelans on its Board" in the Press and on
the Internet, however it is Vannessa's experience that the Venezuelan
Supreme Court is independent and fair. Furthermore, International
Courts will be involved.
6) Finally, the question of title seems to have found some clarification
in the announcements made last week. The President of Crystallex de
Venezuela did not object to the statement by CVG President Rangel that
the title to the concessions (which was always claimed to be owned by
Crystallex) will not be given to Crystallex and will stay with the
State.
With the sudden turn of events by the announcement of the CVG, clear and
detailed information and full disclosure about the Las Cristinas issue is of
utmost importance for investors. Vannessa will soon post more information and
copies of court proceedings on its web page for review.
On Behalf of the Board,
"MANFRED PESCHKE"
----------------------------
Manfred Peschke, President
VANNESSA VENTURES LTD. |
