Venezuela official says Crystallex claims false
Reuters Story - March 18, 1998 11:04
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MIAMI, March 18 (Reuters) - The Venezuelan government said
on Wednesday that Vancouver-based Crystallex International
Corp's claims to the disputed Las Cristinas gold mine
deep in the Venezuelan jungle were false.
Both Crystallex and Toronto-based Placer Dome Inc
have claimed title to the mine, which some analysts said could
be one of Latin America's richest gold mines.
Last year, Crystallex filed an appeal of Placer's rights in
the Venezuela Supreme Court, touching off speculation that the
Placer could lose its rights to the concession.
"We want to tell you that, despite numerous published
claims in the Canadian press made by Crystallex International
Corp and its promoters that a pending court challenge in
Venezuela could give it the rights to gold concessions on these
parcels, the claims are not true," Rafael Rodriguez Acosta,
president of Venezuela's congressional commission on mining,
told a news conference.
"That is all plain and simple. Crystallex does not have the
rights it is claiming and which it is telling its investors it
has," Acosta said.
Acosta also said the Venezuelan government had asked the
country's supreme court to render a speedy decision on the
pending court case and added that it was unlikely that
Crystallex would win its appeal.
"We must reassure all potential investors in Venezuela that
the rule of law prevails in Venezuela and that claims like
those made by Crystallex cannot and will not be tolerated,"
Acosta said.
Acosta's sudden announcement sent Crystallex shares
tumbling down 2.65 to 4.50 a share in heavy trading on the
Toronto Stock Exchange.
The company's shares traded as high as 11.85 last month.
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