VANCOUVER - CRYSTALLEX INTERNATIONAL CORPORATION (KRY on T.S.E. and Amex) today announced the outstanding balance of the purchase price for its acquisition of Inversora Mael, through which it acquired title rights to the Cristinas 4 and 6 concessions, has been renegotiated and that Crystallex will use some of the proceeds from a new $US6 million equity line of credit in the restructured deal.
As reported previously, Crystallex acquired the shares of Inversora Mael in March 1997 when Ventures (Barbados) Ltd. (Ventures), a private company held by two Crystallex directors, purchased the shares of Stay Management Ltd. ("Stay") from Red Glove A.V.V. ("Red Glove"). The shares of Inversora Mael are the sole asset of Stay. Effective April 30, 1999, Ventures and Red Glove agreed to reduce the remaining portion of the purchase price from US$23.5 million to US$10 million plus 5 million warrants to purchase Common Shares of Crystallex at a price of US$2.00 per share. The US$10 million is payable over time in cash or common shares of the Company.
Also, Crystallex has entered into a US$6 million equity line of credit financing and has completed an initial draw down of approximately US$2 million. The draw down involves a private placement of convertible notes and common share purchase warrants. The 7% notes are convertible into common shares of the Company at a discount to the market price at the time of conversion. The warrants have an exercise price equal to 140% of the market price of the Company's common shares at the time the warrants are issued. A portion of the initial draw down is being used for certain payments related to the renegotiated Inversora Mael agreement.
Marc J. Oppenheimer, President and Chief Executive Officer of Crystallex, commented that these are very positive developments for the Company. " The new equity line of credit gives Crystallex more flexibility in continuing its growth strategy of internal development and acquiring producing or near production properties. The renegotiated agreement in regard to Inversora Mael is an initial step in the process of managing the costs involved in asserting our claim to title rights to the Cristinas 4 and 6 concessions," Oppenheimer said.
Crystallex International Corporation is a gold mining and exploration company. The Company's strategy for growth is to develop its portfolio of properties in South America as well as to diversify geographically by investing in producing or near-production projects and by exploring properties of merit in other areas of the world.
On Behalf of the Board:
Marc J. Oppenheimer, President & CEO
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