The Vancouver Sun reports in its Wednesday edition that the controversy
that has enveloped the rich Las Cristinas deposit in Venezuela is due
mainly to an insistence by Crystallex International that it owns the
concession. The Sun's David Baines takes a broad look at the company that
on Friday claimed government backing for its proposal to develop a mine at
the disputed property. Each year, the company has recorded the property an
associated costs as an asset on its books. It lost a final and binding
court case on the matter in June, 1998. Last week, government officials
said that title to the concesion would remain with the state. For years the
company has repeatedly reported that certain of its assets are under
development and on the verge of production, only to be hit by unexplained
delays. It has paid extraordinary amounts to its top officers and
directors. Last year, chairman Robert Fung was paid an astounding $630,000
(U.S.), while president Marc Oppenheimer made $623,000 (U.S.). Mr. Fung
owns only 19,500 shares of the company, while Mr. Oppenheimer owns 25,000.
Crystallex is noted for avoiding a skeptical press; Mr. Bains's numerous
phone calls to company offices were not returned.
(c) Copyright 2002 Canjex Publishing Ltd.
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The Vancouver Sun reports in its Tuesday edition that news that the
government of Venezuela chose Crystallex International to develop the
Cristinas gold deposit sent shares of the Vancouver-based junior up 60
cents Monday to $3.20 on the Toronto Stock Exchange on huge volume of 2.75
million shares, while another 3.39 million shares traded on the Amex. The
Sun's David Baines writes that with 85 million shares out, the company's
stock market value is $272-million. Whether this market capitalization
fairly reflects the company's true worth is difficult, if not impossible,
to determine due to the lack of information released by Crystallex. There
is no indication how the joint development will be structured, who will own
what, or how capital expenditures and profits will be divided. Crystallex
president Marc Oppenheimer told Bloomberg that developing the
12-million-ounce deposit would cost $400-million (U.S.) to $500-million
(U.S.) and take 18 to 20 months to build. Toronto's National Post heralded
the announcement as a "major coup" for the junior, but there is no
indication that an operating contract has actually been negotiated, let
alone signed. There is also no indication authorities have agreed to
transfer title to the property to Crystallex.
(c) Copyright 2002 Canjex Publishing Ltd. |
