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

To: Valuepro who wrote (4434)	1/22/1998 1:20:00 AM
From: Kerlan	Read Replies (2) \| Respond to of 10836

Check out this crock of crap that I assume is going to appear later today in the Financial Post or Toronto sun. Thursday, January 22, 1998 Placer puts Las Cristinas on hold By SANDRA RUBIN The Financial Post ÿPlacer Dome Inc. says it is suspending construction at a disputed Venezuelan gold mine because of problems nailing down favorable financing ahead of a court ruling on ownership of the find. ÿThe delay is seen as a blow for Placer, which has said repeatedly there's no merit in the legal challenge from tiny Crystallex International Corp. and the wrangling will not affect the US$576-million project. ÿPlacer said late Tuesday all activity at the remote site will be wound down by the beginning of March, with 600 workers sent home to await the ruling. ÿ"It's a disappointment to do this," said spokesman Hugh Leggatt. "But when we said those things, we were counting on the Supreme Court [of Venezuela] decision coming much earlier. ÿ"Since we don't have a decision, we're simply being responsible with our shareholders' investment." ÿNews of the planned shutdown pushed Crystallex stock (kry/tse) up $1.10 to $5.90 yesterday, as investors speculated the Vancouver junior could emerge with the rights to Las Cristinas - one of the richest gold deposits in Latin America, with an estimated reserve of 11.8 million ounces. ÿCrystallex spokesman Richard Marshall said Placer's decision supports his company's assertion that the bigger company does not have a lock on the mine. ÿ"You look at the statements we made back in August when Placer had a ribbon-cutting ceremony at the mine, and we said we thought that was strange, given that the court was considering this issue," he said. ÿ"Nothing material has changed since then." ÿPlacer, one of the world's biggest gold producers, said the decision to halt construction was taken to ensure it gets the best possible terms to finance the rest of the project. The company has US$250 million in project financing lined up with a multilateral consortium led by Credit Suisse First Boston and could get the money today if it wanted, Leggatt said. ÿBut the lending syndicate is demanding a higher rate to advance the funds ahead of the Supreme Court's ruling to compensate for the added risk. ÿ"Until now we've simply been doing infrastructure, like the construction camp, which cost about US$30 million," Legatt said. "But the next stage involves a large commitment, which is simply not prudent to make until we are 100% sure of the title." ÿThe court was expected to rule last week, but instead announced another delay - its fifth since October. A decision is now expected within two weeks. ÿGold analyst Bob Bishop said he suspects Placer, which has been badly battered by falling gold prices, is putting on the brakes to prepare investors for an unfavorable ruling. ÿ"I think it's preferable for them to say that than it is for the court to simply come forward with a ruling against them," said Bishop, editor of the California-based Gold Mining Stock Report. ÿ"My guess is the next thing we'll hear Placer say is that the property they've spent US$110 million on isn't economic any more. They'll probably start talking it down." ÿThe company has said the gold below the remote Venezuelan forest represents about 25% of its total reserves, and its stock (pdg/tse) took some hits in March when news of the legal challenge surfaced in Canada. ÿYesterday, the stock was unaffected by the announcement of a planned delay in construction, gaining 20› to close at $18.10.

To: Valuepro who wrote (4434)	1/22/1998 9:56:00 AM
From: c.r. earle	Read Replies (2) \| Respond to of 10836

ValuePro, The two articles that have come out in G&M, and FP have both quoted the Ven. court as indicating that a ruling may be forthcoming in the next two weeks. I am uncertain where you determined that there is expectation that a ruling was expected today. Unless it was on the Insider Report at the Stockhouse Online site. Unfortunately they have been crying wolf about a ruling coming out 'anyday now' for months. I would tend to look at the next two weeks rather than today. Regards

To: Valuepro who wrote (4434)	1/26/1998 12:55:00 AM
From: Ward Nicholson	Read Replies (5) \| Respond to of 10836

ValuePro: It's encouraging to us "longs" that you've covered. I agree about tomorrow's stock action, but have to add that tomorrow's market will be dominated by expectations of a ruling TOMORROW! You wrote the above last Wednesday. I'm curious as to how you now anticipate KRY's trading action. Myself, I've once again turned bearish and I'm looking to re-establish a short position. I can't help but be convinced by the technicals that the price will fade. Volume is dying on this bull run and the $6 roof is becoming ever more formidable. I think the bulls have given it all they can for the time being and it's time to let Miss Gravity do her dance. I can't find any divergent indicators. Just my opinion...I'm sure you (and others) will disagree. :-] WN