Here is what I believe to be true.
Everything is complete to move ahead with our JV deal except for VZ fulfilling points A and B on page 5 of the primary agreement.
(a) the appropriate approval authority within the Government of Venezuela and CVG shall each have approved, in writing, in a form satisfactory to each of the parties, acting reasonably, the assignment of the MOC to JV Subco or alternatively, to allow for the assignment of a two-thirds interest in the MOC to CRRC or its designated affiliate;
(b) the appropriate approval authority within the Government of Venezuela shall have issued the “Permit to Impact Natural Resources” in respect of the environmental impact study relating to the development of the Project as a 20,000 tonnes/day gold mine (the “Environmental Permit”) to JV Subco or to Crystallex and CRRC (or their designated affiliates), in the latter case pro rata in accordance with their interests in the Joint Venture, in a form satisfactory to each of the parties, acting reasonably;
I doubt Kry is willing to open up the MOC to change without these letters since it may cause a breach in our MOC and possibly our arbitration rights. I can't find it right now but I think there is a clause in the MOC about transferring or selling the MOC.
Much has been made about the change in language in some parts of the Q2 and Q3 reports. I see this as a non issue. If the language was changed it would be to move our deal ahead or make VZ happy. I don't see anything nefarious about it.
Some have mentioned that they don't think our deal is complete with Crrc because we are in discussions with them. I don't think that is the case at all. We could be in discussions about how to move the process forward when dealing with VZ. Since both CRRC and KRY will be partners in this deal I would hope they would be in constant contact and continue to discuss how the can encourage VZ to make their verbal promises a reality.
I took a guess at the date of Oct. 15th for our good news. This was based on Hugo going to China. When that didn't happen it also took a perfect opportunity away for Hugo to make a big announcement.
With the comments about Jintao wanting to visit VZ, I've had this item on my google alert for a while now. I know our buddy RC said Hugo was going over to see Jintao but we know know for sure (as if we didn't already know) it was just more BS in RC trying to sell memberships for $75 a pop.
One thing I find really strange is that Khan went to China for 9-10 days and we didn't hear a peep about it. We keep being told he wasn't there for anything to do with LC. I believed it at first but given Hugo's desire to be in the press it just seems strange we didn't hear about any signings.
I have also noticed that when ever the Russian are mentioned as possible miners of LC it is usually based on Hugo buying military arms from Russia. This week the head of the Chinese People's Liberation Army Chen Bingde is meeting with his VZ counterparts as well as Hugo himself.
During his three-day stay in Venezuela, Chen will also meet with Venezuelan President Hugo Chavez and visit the country's Ministry of Defense and a military academy.
http://english.sina.com/china/p/2010/1115/348240.html
Perhaps Hugo wants to ensure he has another supplier of Arms after he has to tell the Russians they won't be getting LC.
I'm pretty frustrated at this point but will continue to wait since I have no other option knowing the deadline to file is only 4 months away.
JJ
