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Gold/Mining/Energy : Crystallex (KRY) -- Ignore unavailable to you. Want to Upgrade?

To: charred who wrote (10047)	8/15/1999 3:07:00 PM
From: Char	Read Replies (2) \| Respond to of 10836

FWIW, here are a few words on KRY. >Both Venezuela and Placer Dome are still trying to extricate themselves from their dilemma. A judge on the panel, that gave Placer title to Cristinas 4 & 6 concessions at the expense of Crystallex (KRY), was found by U.S. authorities to have been bribed. Negotiations are in process between Placer, KRY and the Venezuelan government. Venezuela does not want to appear to have a corrupt judiciary. Placer officials don't want to go to jail and Crystallex just wants what rightfully by law is theirs. The key to the solution is the new mining law. If it has wording to the effect that if a party does not have a concession on the date that the law is enacted, then the party will have to go through the appropriate procedures to obtain that concession. Since the owner of that property has a superior right as against third persons for the rights to the concessions on that property, Placer would be out of luck as KRY exercises its right to the concessions by virtue of holding title. All Placer has is work contracts, and they are expired. If they wanted property they'd have to reapply. Whoever owns title controls the property. Our conclusion is the government wants the matter to go away. Placer can walk away by simply saying we no longer have title to work the property and the criminal aspects of the situation will disappear. Venezuela certainly doesn't want a trial depicting it as a nation of crooks. And Crystallex will be able to proceed mining 4 &6. If our synopsis is correct we'd sell Placer and buy Newmont or perhaps short Placer. And we'd buy Crystallex on speculation that this is the easiest way out for all parties. We have no financial or other arrangements with any of these companies. much less the Marxist Chavez government. Robert Chapman 16 August 1999< gold-eagle.com