Crystallex Closes the Sale of its Uruguayan Interests, including the San Gregorio Mine to Uruguay Mineral Explorations Inc.; Red
October 27 2003 - 1:03PM
PR Newswire (US)
Crystallex Closes the Sale of its Uruguayan Interests, including
the San Gregorio Mine to Uruguay Mineral Explorations Inc.; Reduces
Hedge Book TORONTO, Oct. 27 /PRNewswire-FirstCall/ -- Crystallex
International Corporation (TSX: KRY) announced today that it has
successfully closed the previously reported transaction with
Uruguayan Mineral Explorations Inc. ("UME") for the sale of
Crystallex's Uruguayan mining operations. "Since our acquisition of
Minera San Gregorio ("MSG") in 1998, it has been the Company's
primary gold producer," said Todd Bruce, President and CEO of
Crystallex. "However, we plan to offset the loss of production from
Uruguay with improved production from our Venezuelan operations
including our new underground mine at Tomi. We are now completely
focused on our properties in Venezuela, and in particular the
development of Las Cristinas properties. Crystallex completed
private placement financings which raised US $38 million in
September 2003. A significant amount of that funding will be
committed to the development and expansion of our operations in
Venezuela." Under the terms of the agreement, UME will pay
Crystallex US$2,000,000 payable in two equal installments. The
first payment of US$1,000,000 will be due 6 months after the
closing date of the transaction and the second US$1,000,000 payment
will be due 12 months after the closing date. As well, UME, on
closing, funded MSG to retire in full its forward contract (hedge
positions) to Standard Bank London Ltd., an obligation previously
guaranteed by Crystallex. UME has assumed in full, all of the
rights and obligations, including all environmental liabilities of
the purchased companies as of the date of closing. As a result of
the retirement of the MSG forward contracts and the recent
completion by Crystallex of a buy back of 25,000 ounces from its
forward sales program, Crystallex has reduced its forward sales
exposure to 126,260 ounces from 205,812 ounces reported at the end
of its second quarter ended June 30, 2003. The reduction in forward
sales commitments reflects the implementation of the Company's
continuing strategy to reduce its hedge book. "We are committed to
strengthening our balance sheet," Mr. Bruce said. "The sale of our
Uruguayan assets coupled with the reduction in our hedge book
exposure confirms that commitment and will benefit the Company
moving forward." About Crystallex Crystallex International
Corporation is a Canadian based gold producer with significant
operations and exploration properties in Venezuela. Crystallex
shares trade on the TSX and AMEX Exchanges. The Company's principle
asset is the Las Cristinas property in Bolivar State which is
currently under development. Other producing assets include the
Tomi Mine and La Victoria and Revemin Mill. For Further
Information: Investor Relations Contact: A. Richard Marshall, VP at
(800) 738-1577 Visit us on the Internet: http://www.crystallex.com/
Email us at: NOTE: This may include certain "forward-looking
statements" within the meaning of the United States Securities
Exchange Act of 1934, as amended. All statements, other than
statements of historical fact, included in this presentation,
including, without limitation, statements regarding potential
mineralization and reserves, exploration results, and future plans
and objectives of Crystallex, are forward-looking statements that
involve various risks and uncertainties. There can be no assurance
that such statements will prove to be accurate, and actual results
and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results
to differ materially from the Company's expectations are disclosed
under the heading "Risk Factors" and elsewhere in documents,
including but not limited to its annual information form ("AIF")
and its annual report on Form 20-F, filed from time to time with
the Canadian provincial securities regulators, the United States
Securities and Exchange Commission ("SEC"), and other regulatory
authorities. The Toronto Stock Exchange has not reviewed this
release and does not accept responsibility for the adequacy or
accuracy of this news release. DATASOURCE: Crystallex International
Corporation CONTACT: Investors, A. Richard Marshall, VP of
Crystallex International Corp., +1-800-738-1577, or Web site:
http://www.crystallex.com/ Company News On-Call:
http://www.prnewswire.com/comp/114620.html
Copyright
Crystallex (AMEX:KRY)
Historical Stock Chart
From Sep 2024 to Oct 2024
Crystallex (AMEX:KRY)
Historical Stock Chart
From Oct 2023 to Oct 2024
Real-Time news about Crystallex International Corp. Common Stock (American Stock Exchange): 0 recent articles
More Crystallex Intl Cp News Articles