Crystallex to appeal proposed delisting by NYSE

4:00 pm by Phil Cheng

Crystallex International Corp. (TSE:KRY)(AMEX:KRY) said Wednesday that it intends to appeal a decision by the New York Stock Exchange to de-list the gold property developer on account of it no longer having any operating activities.

The Toronto-based company said the de-listing notice from the NYSE relates to the termination of Crystallex’s mining contract for the Las Cristinas gold project, its main asset, which contains an estimated 17 million ounces of gold.

The contract was terminated by Corporacion Venezolana de Guayana, a Venezuelan state-owned mineral resource company, for Crystallex's "lack of activity to progress the project for more than one year". The project was effectively seized by the government-owned company.

"The company reasonably believes that there is value in the company and is continuing to take steps to seek, through the arbitration process, full restitution by Venezuela of its investments,” Crystallex said in its statement.

"While pursuing the arbitration claim, the company is continuing to seek settlement alternatives with the government of Venezuela, which would result, if completed successfully, in value to the company's stakeholders."

The exchange also noted that Crystallex's share price, which has averaged US$0.15 per share over the last 30 days, was too low to continue listing.

Crystallex said its shares will continue to trade on the Toronto Stock Exchange and will restart trading on the NYSE Amex while the company's appeal is pending.

Since the announcement, the company’s shares dropped 17.4% on the NYSE Amex to trade at 12.9 cents as of 3:13 pm EST. The shares have fallen nearly 70% over the past year.