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Management’s Discussion and Analysis
For the Six Month Period Ended June 30, 2011
http://www.crystallex.com/Theme/Crystallex/files/Reports/KRY_MDA_FS_Q2_2011_FINAL_v001_s8twjj.pdf
Crystallex International Corporation
TSX : KRY
OTCQB : CRYXF
August 12, 2011 13:40 ET
Crystallex Reports Q2 Results
TORONTO, ONTARIO--(Marketwire - Aug. 12, 2011) - Crystallex International Corporation (TSX:KRY)(OTCQB:CRYXF) ("Crystallex" or the "Company") today reported its financial results for the quarter ended June 30, 2011. The Company prepares its consolidated financial statements in U.S. dollars. Effective the first quarter of 2011, the Company's financial statements are prepared in accordance with International Financial Reporting Standards, ("IFRS"). The consolidated financial statements along with management's discussion and analysis will be available for viewing on the Crystallex International Corporation website at www.crystallex.com. The Documents have been filed with SEDAR (www.sedar.com).
Crystallex is a Canadian-based mining company with a focus on acquiring, exploring, developing and operating mining projects. Crystallex has successfully operated an open pit gold mine in Uruguay and developed and operated three gold mines and a milling operation in Venezuela. Since the signing of a Mine Operating Contract (the "MOC") in September 2002 with the Corporacion Venezolana de Guayana (the "CVG"), which granted Crystallex exclusive rights to develop and operate the Las Cristinas gold properties ("Las Cristinas Project" or "Las Cristinas") located in Bolivar State, Venezuela, the Company has worked vigorously to bring the Las Cristinas Project to development. The CVG confirmed the validity of the MOC in August 2010. Notwithstanding its compliance with the MOC, the fulfillment of all the requirements necessary for the issuance of the Authorization to Affect Natural Resources (the "Permit") from the Ministry of Environment and Natural Resources ("MinAmb") and assurances that the Permit would be granted, on February 3, 2011, the MOC was unilaterally terminated by the CVG. The Company believes there is no justification for this unilateral rescission under Venezuelan or international law. On February 16, 2011, the Company filed a Request for Arbitration ("Arbitration Request") before the Additional Facility of the World Bank's International Centre for Settlement of Investment Disputes ("ICSID") against the Bolivarian Republic of Venezuela ("Venezuela") pursuant to the Agreement between the Government of Canada and the Government of the Republic of Venezuela for the Promotion and Protection of Investments (the "Treaty"). The claim is for breach of the Treaty's protections against expropriation, unfair and inequitable treatment and discrimination. The Arbitration Request was registered by ICSID on March 9, 2011. The next step in the arbitration process, constitution of the arbitral Tribunal is currently underway.
Crystallex is currently seeking the restitution by Venezuela of its investments in Las Cristinas, including reinstatement of the MOC, the issuance of the Permit and compensation for interim losses suffered, or alternatively, full compensation for the value of its investment in an amount in excess of US$3.8 billion.
The Company is diligently advancing its arbitration claim, while remaining receptive to settlement alternatives with Venezuela. At the same time, the Company has improved its cash position by selling a portion of its remaining Las Cristinas project equipment for gross proceeds of $16.9 million and signing an option agreement for possible additional equipment sales. The Company is pursuing financing alternatives to raise proceeds to repay the $100 million Notes due December 23, 2011 and to provide the Company with additional liquidity. There are no assurances that alternative financing transactions will be successfully concluded. A portion of the proceeds from equipment sales and possibly proceeds from a financing in excess of the Note repayment are planned to be used for evaluating and pursuing additional opportunities.
Crystallex's senior management team and Directors will have an instrumental role in executing these objectives. Their historical knowledge of the Las Cristinas project is vitally important to successfully advancing the arbitration claim, while their business and finance experience are critical for identifying and evaluating new opportunities.
On May 27, 2011, the Company was served with a Notice of Application by certain holders of the notes (the "Notes"). The Noteholders (the "Noteholders") are seeking a declaration from the Court that there has been a "Project Change of Control". If successful, the Company would be required to purchase all of the Notes of each Noteholder who has so requested at a price equal to 102% of the principal amount of the Notes, together with accrued and unpaid interest to the date of purchase. The Company has previously successfully defended multiple actions by the Noteholders and it intends to vigorously defend this application as well. A court hearing has currently been scheduled for September 7, 2011.
On June 1, 2011, the Company was advised by the NYSE Amex that its appeal of the Exchange's delisting determination was denied. Crystallex appealed this decision to the full Committee on Securities of the NYSE Amex. The NYSE Amex suspended trading of Crystallex shares on the NYSE Amex while the Appeal process was ongoing. The full Committee considered the matter on August 3, 2011 and in a letter dated August 10, 2011, the Company was advised that the full Committee had upheld the Panel Decision to delist the securities from the NYSE Amex.
The August 10, 2011 letter from the NYSE Amex noted that, "The Staff had reached this determination based on Section 1002(c) of the Company Guide, which provides that a stock may be delisted from the Exchange if the issuer ceases to be an operating company, and Section 1003(c)(1) of the Company Guide, which further provides that the Exchange should consider delisting a stock "[i]f the issuer has sold or otherwise disposed of its principal operating assets or has ceased to be an operating company or has discontinued a substantial portion of its operations or business for any reason whatsoever, including, without limitation, such events as... condemnation, seizure or expropriation."
The Company's shares continue to trade in Canada on the TSX and in the United States on the OTCQB.
The Company's public filings, including the most recent Financial Statements and Annual Information Form, can be accessed through the System for Electronic Document Analysis and Retrieval ("SEDAR") website at www.sedar.com and the Company's website at www.crystallex.com.
http://www.marketwire.com/press-release/crystallex-reports-q2-results-tsx-kry-1549165.htm
MATL shift protects tepee rings in Cut Bank area
3:24 AM, Aug. 5, 2011
A key route shift in a major power transmission line involving a small piece of property that set off a big fight over eminent domain in Montana has the support of both the developer and the landowner.
The change, involving less than a mile of the 214-mile Montana Alberta Tie Line 1.5 miles southeast of Cut Bank, was approved Thursday by the Montana Department of Environmental Quality.
Developer Tonbridge Power Co and Larry Salois, the guardian of his mother, Shirley Salois, who owns the property, welcomed the decision.
"It's a huge step in the right direction, and I would say we're awful close to a solution," Salois said.
Tonbridge applied June 29 to amend its certificate of compliance to make the changes requested by Salois.
Tonbridge's Darryl James said he hopes Salois signs an easement agreement in the wake of the decision allowing the route tweak.
"It is the final regulatory hurdle at the state level to see if we can't get this thing moving forward again," James said.
Salois stopped short Thursday of saying he would sign an agreement with Tonbridge, but said he was guardedly optimistic.
James said the U.S. Department of Energy still needs to approve the route change on the Salois property, but said he doesn't anticipate any problems with the agency doing so.
The Salois amendment is the third recent change approved by the DEQ that allows route shifts to address concerns raised by landowners. Two other alterations previously were approved in the Dutton area. In those cases, the company and the landowners reached easement agreements following the adjustments, James said.
The amendment for the route change on the Salois property, which was approved by DEQ Director Richard Opper, will allow Tonbridge to move the poles two-tenths of a mile to the east, onto cultivated land, so they do not impact historic tepee rings, wetlands, and an oil and gas well, said Tom Ring of the DEQ's Major Facilities Siting Office.
"I was hoping that Mr. Opper would approve that," Salois said.
The six-tenths of a mile of line and poles that would cross the Salois' property has impacted the entire 214-mile transmission line, which would connect the electrical grids of Alberta and Montana at Great Falls and Lethbridge.
In 2010, a Glacier County district judge ruled that Toronto-based Tonbridge didn't have the authority to condemn land in Montana. The decision followed the filing of a condemnation complaint by Tonbridge against Salois to gain access to the family's land, which Salois fought, saying the proposed route was too close to tepee rings and a wetland. The ruling prompted the 2011 Legislature, pressed by the state's utilities and Tonbridge, to pass a law allowing developers of merchant transmission lines to use eminent domain authority as a last resort.
Despite the approval of the amendment, legal challenges remain for the project.
Landowners living along the southern portion of the route between Cut Bank and Great Falls, where Tonbridge has used the new state law to condemn land, are suing the state and Tonbridge, alleging the new law is unconstitutional. Opponents also are gathering signatures in an attempt to overturn the law at the polls in the 2012 election.
Salois said he hopes Montanans get the chance to vote on the broader eminent domain question, even though he is optimistic about his situation being resolved.
Reach Tribune Staff Writer Karl Puckett at 406-791-1471, 800-438-6600 or kpuckett@greatfallstribune.com.
http://www.greatfallstribune.com/article/20110805/NEWS01/108050327/MATL-shift-protects-tepee-rings-Cut-Bank-area
Route change moves MATL from tepee rings on Salois property
3:53 PM, Aug. 4, 2011
The Montana Department of Environmental Quality approved a key route change Thursday for a power transmission line east of Cut Bank that has the support of the company proposing the line and the landowner.
The amendment will allow Tonbridge Power Co. to shift the line of the poles so they do not impact historic tepee rings on land owned by Shirley Salois. Larry Salois, Shirley’s guardian, said he was guardedly optimistic he can come to terms with Tonbridge in the wake of the decision.
“I think we’ll be able to move ahead with this thing I hope,” Salois said.
DEQ and Tonbridge officials met with Salois on the site recently to discuss the changes. Tonbridge’s Darryl James said the decision moves the line so it avoids the entire cultural site.
“It is the final regulatory hurdle at the state level to see if we can’t get this thing moving forward again,” James said.
The project has been stalled because of disputes with landowners over the impact of the line, beginning with Salois.
In 2010, a Glacier County district judge ruled Tonbridge could not condemn an easement across the Salois land. In 2011, the Legislature passed a law allowing developers of merchant transmission lines to use eminent domain.
The law is now being challenged in Teton District Court by landowners living along the southern portion of route between Cut Bank and Great Falls.
The decision on the Salois amendment is the third change the DEQ has approved to shift the line to address concerns raised by landowners in its path.
See Friday's Tribune for more details.
http://www.greatfallstribune.com/article/20110804/NEWS01/110804020/Route-change-moves-MATL-from-tepee-rings-Salois-property
BonTerra Resources Inc.
TSX VENTURE : BTR
FRANKFURT : 9BR
August 04, 2011 08:00 ET
BonTerra Completes Drilling the First 10,000 Metres & 40 Drill Holes on the Eastern Extension Property, Quebec
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 4, 2011) - BonTerra Resources Inc. (TSX VENTURE:BTR) (FRANKFURT:9BR) (the "Company", "BonTerra") has completed drilling forty (40) diamond drill holes on the Eastern Extension (the "Property") totaling 10,112 metres. This drill program commenced in October 2010 and has continued into July of this year. Over the past year, BonTerra has submitted a total of approximately 4,300 samples to ALS Chemex of Val d'Or, Quebec to be assayed for gold. BonTerra currently awaits gold assays for approximately 1,450 of these samples. An updated drill map can be accessed by clicking on the link near the base of this news release.
Of great interest to the Company is BA-11-29. This hole was deepened after intersecting a mineralized vein zone at the base of the hole assaying 8.1 metres of 14.17 grams/tonne ("g/t") gold including a high grade zone of 3.50 metres grading 32.74 g/t and the highest grade sample BonTerra has received to date, 0.70 metres at 114.0 g/t gold. The gold values in this paragraph were disclosed in a news release dated July 12, 2011. This intercept is open at depth and additional mineralized veins have been identified in the deepened part of this drill hole with assays pending. The Company also recently discovered a vein over 10 metres in width for the first time on the Property.
BonTerra is currently awaiting assays for eight (8) drill holes at this time as shown by both table 1 and by clinking on the link to the drill map below. All these drill holes intersected smoky quartz veins mineralized with sulphides. Visible gold present in smoky quartz veins has also been noted in the geological drill logs for five (5) of these drill holes. One of the eight (8) drill holes with assays pending has visible gold noted in six (6) distinct smoky quartz veins. These smoky quartz veins are the primary exploration target and host the vast majority of the high grade gold zones. The Company is currently prospecting using a beep mat to aid in finding near surface additional subcropping veins and drill targets on the Property.
Mitchell Adam, President, states, "Drilling approximately 10,000 metres is a significant milestone for BonTerra. In addition, the Company has sent over 4,000 samples to be assayed for gold. It demonstrates the high caliber of the Eastern Extension Property and the Urban-Barry belt. It also exhibits BonTerra's strong commitment to advancing this exciting gold property. We look forward to receiving additional assays and announcing our resource calculation for the Property later this year."
Link to BonTerra Resources' Drill Program Map, Eastern Extension Property
http://www.bonterraresources.com/i/maps/2011-08-03-MAP-FOR--10000-Metres-Drilled.jpg
Table 1: Location of the Drill Holes with Assays Pending
DDH
Number
Northing
(UTM NAD83
)
Easting
(UTM NAD83
)
Depth
(metres
)
Azimuth
(degrees
)
Dip
(degrees
)
BA-11-10
456236
5428225
510.05
158(degrees
)
-70(degrees
)
BA-11-25
456140
5428118
351.00
190(degrees
)
-55(degrees
)
BA-11-26
456140
5428118
498.10
199(degrees
)
-55(degrees
)
BA-11-27
456267
5428273
450.30
160(degrees
)
-52(degrees
)
BA-11-28
456163
5428220
399.00
156(degrees
)
-52(degrees
)
BA-11-29
456204
5428128
291.28*
160(degrees
)
-50(degrees
)
BA-11-30
456170
5428259
468.09
174(degrees
)
-52(degrees
)
BA-11-31
456191
5428295
495.00
160(degrees
)
-52(degrees
)
*BA-11-29 was originally drilled 198.10 metres deep but was extended deeper.
Qualified Person
This technical content of this press release has been reviewed and accepted by Thomas Clarke, Pr.Sci.Nat. Mr. Clarke is a Director of BonTerra and a Qualified Person under NI 43-101. The drill program and sampling is being supervised on behalf of the Company by Geologica Inc. of Val d'Or, Quebec.
About BonTerra Resources
BonTerra is a Canadian gold exploration company focused continuing to expand the known gold zone on the Eastern Extension property, part of the world famous Abitibi Greenstone Belt of Quebec. BonTerra has a total of four properties in the Urban-Barry belt, all gold exploration targets. BonTerra's Eastern Extension, Lavoie, Urban-Barry and Anderson properties are located approximately 170 km NE of Val-d'Or and 125 km SW of Chibougamau in the Urban, Barry and Bailly townships in Québec.
Other Companies Exploring in the Urban-Barry Gold Camp
Neighbouring companies in the region are Metanor, Beaufield, Eagle Hill, Glen Eagle, Urbana, Amseco, Freewest and Key Gold. The Company has an option to earn 100% of the Eastern Extension property from Abitex Resources subject to a 2% NSR.
ON BEHALF OF THE BOARD
BONTERRA RESOURCES INC.
Mitchell Adam, President, Director
http://www.marketwire.com/press-release/bonterra-completes-drilling-first-10000-metres-40-drill-holes-on-eastern-extension-property-tsx-venture-btr-1545947.htm
Gold Reserve Inc. Provides Update To ICSID Arbitration
SPOKANE, WA, Aug. 1, 2011 /CNW/ - Gold Reserve Inc. (TSX:GRZ) (NYSE-Amex:GRZ) announced the filing of its Reply on July 29, 2011 to Venezuela's Counter-Memorial relating to the arbitration claim against the Bolivarian Republic of Venezuela with the World Bank's International Centre for Settlement of Investment Disputes ("ICSID"), in accordance with the provisions of the Canada-Venezuela Bilateral Investment Treaty ("BIT").
Gold Reserve's claim alleges violations of three provisions of the Canada-Venezuela BIT culminating in the effective expropriation of Gold Reserve's sizable investments in the world-class Brisas gold/copper project and the promising Choco 5 property.
Gold Reserve claims that Venezuela's wrongful conduct caused it to lose the entire value of its rights to develop the Brisas Project and Choco 5. As a result, Gold Reserve is seeking compensation corresponding to the restitution, or fair market, value of the rights to develop the Brisas Project and Choco 5, as of the date of the award. After accepting a few proposed corrections noted in Venezuela's Counter-Memorial and updating the interest calculations to reflect the measure of Gold Reserve's losses as of June 30, 2011, the revised claim now approximates $2.1 billion.
Venezuela is scheduled to file its Rejoinder by November 14, 2011. At that point the written phase of the arbitration will be complete and the final hearing on the merits and jurisdictional issues is scheduled for a 10 day hearing to commence on February 6, 2012 in Washington, D.C.
Doug Belanger, President, stated, "The filing of our Reply is the culmination of an extensive effort by counsel, technical, legal and financial experts and Company personnel. With only six months to the final hearing we are very pleased with the progress and the pace of the arbitration. However, we always remain ready to evaluate and possibly enter an amicable settlement that would compensate Gold Reserve for its losses in addition to possibly retaining an interest in the project in exchange for the transfer of the extensive technical information that will allow the project to proceed on a fast track basis rather than to take years to duplicate. Any settlement would only be accepted if it were beneficial to the shareholders and stakeholders of the company. Our objective is to pursue both the arbitration and settlement until the process is concluded."
Please visit our website at www.goldreserveinc.com under Investor Relations: SEDAR Filings or SEC Filings.
http://www.newswire.ca/en/releases/archive/August2011/01/c8674.html