imo Fung's only hope for financing lies with the CRRC...unless you believe in the fairy tale that Li Ca Ching will be our surprise financial benefactor or that we can dilute by issuing a few hundred million more shares. The only other possibility that I can see is for an as yet unknown third party (i.e. a Goldcorp, etc.) to step.
How would you play this if you were CRRC?
1. Eagerly wait for KRY to go bankrupt hoping that you could then form a JV with Venezuela notwithstanding the bad PR (think diplomatic economic relations with Canada) and resulting legal complications.
2. Assist KRY with financing understanding that 2\3 of the MOC with a reputable Canadian partner is worth more than empty promises from Venezuela.
Personally, I opt for #2. This starts to get a little complicated when you try to figure out how this would work vis a vis arbitration. I would think that the only way this could work would be for CRRC to buy KRY or set up some type of wholly owned subsidiary (but I'm not sure if this can be done without violating terms of the MOC). This arrangement would certainly put political pressure on Chavez by effectively beating him at his own game. Either he coughs up the permit or we tie up the mine in International Arbtration for years...most likely past the 2012 Presidential election. That would suck on many levels for Venezuela.
Personally I think we get resolution before the upcoming quarterly report.
