KRY continues to be in a holding pattern with respect to progress with their solution to Las Cristinas's and the status of a permit. In a recent email Richard Marshall penciled the following:
"I believe resource projects around the globe have periods of smooth operation as well as times of challenging obstacles."
Well, have a look at our friends at Greystar in neighbouring columbia who are attempting to get their project going and what obstacle they are faced with? Here is a link: (yes they are hurting today with their share price)
http://www.marketwatch.com/story/greystar-resources-announces-request-by-the-colombian-government-for-a-new-angostura-environmental-impact-assessment-2010-04-26?reflink=MW_news_stmp
Ok, what about our situation? What is KRY doing to advance it's interest? Will KRY continue to be a going concern and do they have any hope that they will have an active role in Las Cristina's when the issues are resolved? All good questions with no real answer expect the following points. (all from an email from RM last week)
1. The Company has overcome bumps and obstacles in the past and is working to resolve the matters at hand.
2 Crystallex continues to seek a solution to the Las Cristinas saga and permitting dispute. The Company has a long history of investing, building and operating projects in Venezuela.
3. The Company has not thrown the towel in on the Las Cristinas project nor its belief that a large scale operation at Cristinas will generate significant benefit for the local communities, Venezuela, the environment and Crystallex shareholder and stakeholders.
4 During this time that the Company is working to resolve the Las Cristinas saga, it has maintained low working capital levels and not opted to significantly boost working capital through conventional large and very dilutive financings.
5. I think many investors felt there was no future or appetite for further investment in Venezuela by companies like Chevron, ENI, SNC Lavalin, GE (to name a few) whom have all recently been awarded or advanced huge investments after resolving disputes or problems they had encountered in the past in Venezuela. Unfortunately business and investment problems in Venezuela get much media coverage but advancements and new investments get little coverage.
Do we think that part of the solution is to advance some form of arbitration against the VZ government? Personally, I do not think there is any appetitte for arbitration; it is available to them, but I think it would signal a very lengthy and negative process where all hope would be loss on Las Cristina's and for the retail investor. This was the closing comment from Richard on Las Cristinas:
Who knows maybe we'll be one of the lucky ones to resolve business problems in Venezuela and get the opportunity to advance the project. If not, then there's always arbitration, although it can be a lengthy process.
I must admit that the above comment is the first of any kind from RM that I have ever received with respect to the future and it almost comes across as some kind of guidance. To be clear I am not saying that in the slightest! Do not take as such. Given the length of time most have been involved with KRY in VZ we have had to learn patiences. Not much has changed since my last email some time ago, so steady as she goes until some material event occurs. And this event will eventually come and lets all pray we are close it happens soon!
