NEWSRELEASE??
Crystallex renegotiates Inversora Mael acquisition; $6-million (U.S.)
financing
Crystallex International Corporation KRY
Shares issued 36,433,966 May 7 close $1.00
Mon 10 May 99 News Release
Mr. A. Richard Marshall reports
The outstanding balance of the purchase price for the company's acquisition
of Inversora Mael, through which it acquired title rights to the Cristinas
4 and 6 concessions, has been renegotiated. The company will use some of
the proceeds from a new $6-million (U.S.) equity line of credit in the
restructured deal.
As previously reported, the company acquired the shares of Inversora Mael
in March 1997 when Ventures (Barbados) Ltd., a private company held by two
Crystallex directors, purchased the shares of Stay Management Ltd. from Red
Glove A.V.V. The shares of Inversora Mael are the sole asset of Stay.
Effective April 30, 1999, Ventures and Red Glove agreed to reduce the
remaining portion of the purchase price from $23.5-million (U.S.) to
$10-million (U.S.) plus five million warrants to purchase common shares of
Crystallex at $2.00 (U.S.) per share. The $10-million (U.S.) is payable
over time in cash or shares of the company.
Also, Crystallex has entered into a $6-million (U.S.) equity line of credit
financing and has completed an initial draw down of approximately
$2-million (U.S.). The draw down involves a private placement of
convertible notes and share purchase warrants. The 7 per cent notes are
convertible into shares at a discount to the market price at the time of
conversion. The warrants have an exercise price equal to 140 per cent of
the market price of the company's common shares at the time the warrants
are issued. A portion of the initial draw down is being used for certain
payments related to the renegotiated Inversora Mael agreement.
Marc J. Oppenheimer, president and chief executive officer of Crystallex,
commented that these are very positive developments for the company. "The
new equity line of credit gives Crystallex more flexibility in continuing
its growth strategy of internal development and acquiring producing or near
production properties. The renegotiated agreement in regard to Inversora
Mael is an initial step in the process of managing the costs involved in
asserting our claim to title rights to the Cristinas 4 and 6 concessions,"
Mr. Oppenheimer said.
WARNING: The company relies on litigation proteciton for "forward-looking"
statements.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
With regards,Frank |
