I spoke to RM this morning. Crystallex is focused on the arbitration. Crystallex is turning over the mine site to gov't officials on a rational orderly basis and should be done in several weeks. Crystallex is not in communications with Gov't officials and has not recieved clarification of why the contract was unilaterally terminated. China Railway is in communication with Crystallex still and of course would like to complete the deal. RM does not know of the communications between China Railway and Vz. He stated Obviously Crystallex will listen to any reasonable resolution discussions. He is unaware of any buyout discussions by China or anyone else.
RM is hopeful that that the case will be certified for international arbitration within this month. Once certified a notification goes out to VZ and Crystallex with a list of possible arbitrators. He is very confident in our legal counsel and the firm, which has handled numerous large arbitrations and many including VZ. Our counsel is batting 100% against VZ with some cases settling early on in the process. The process if it went to conclusion will take 18-36 months. Lastly it should noted that our counsel is on this case since 2008 and filed an extensive detailed forty page initial claim which will be added to by expert testimony and submissions.
Crystallex is working on and looking into the various options for financing and have the money aside for the July interest payment to Bond holders. They would expect to sell equiptment over the summer. They do not believe that the Bond holders will move to call the bonds earlier.
