Crystallex (AMEX:KRY)
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Crystallex Closes the Sale of its Uruguayan Interests, including the San
Gregorio Mine to Uruguay Mineral Explorations Inc.; Reduces Hedge Book
TORONTO, Oct. 27 /PRNewswire-FirstCall/ -- Crystallex International Corporation
(TSX: KRY) announced today that it has successfully closed the previously
reported transaction with Uruguayan Mineral Explorations Inc. ("UME") for the
sale of Crystallex's Uruguayan mining operations.
"Since our acquisition of Minera San Gregorio ("MSG") in 1998, it has been the
Company's primary gold producer," said Todd Bruce, President and CEO of
Crystallex. "However, we plan to offset the loss of production from Uruguay with
improved production from our Venezuelan operations including our new underground
mine at Tomi. We are now completely focused on our properties in Venezuela, and
in particular the development of Las Cristinas properties. Crystallex completed
private placement financings which raised US $38 million in September 2003. A
significant amount of that funding will be committed to the development and
expansion of our operations in Venezuela."
Under the terms of the agreement, UME will pay Crystallex US$2,000,000 payable
in two equal installments. The first payment of US$1,000,000 will be due 6
months after the closing date of the transaction and the second US$1,000,000
payment will be due 12 months after the closing date.
As well, UME, on closing, funded MSG to retire in full its forward contract
(hedge positions) to Standard Bank London Ltd., an obligation previously
guaranteed by Crystallex.
UME has assumed in full, all of the rights and obligations, including all
environmental liabilities of the purchased companies as of the date of closing.
As a result of the retirement of the MSG forward contracts and the recent
completion by Crystallex of a buy back of 25,000 ounces from its forward sales
program, Crystallex has reduced its forward sales exposure to 126,260 ounces
from 205,812 ounces reported at the end of its second quarter ended June 30,
2003. The reduction in forward sales commitments reflects the implementation of
the Company's continuing strategy to reduce its hedge book.
"We are committed to strengthening our balance sheet," Mr. Bruce said. "The sale
of our Uruguayan assets coupled with the reduction in our hedge book exposure
confirms that commitment and will benefit the Company moving forward."
About Crystallex
Crystallex International Corporation is a Canadian based gold producer with
significant operations and exploration properties in Venezuela. Crystallex
shares trade on the TSX and AMEX Exchanges. The Company's principle asset is the
Las Cristinas property in Bolivar State which is currently under development.
Other producing assets include the Tomi Mine and La Victoria and Revemin Mill.
For Further Information:
Investor Relations Contact: A. Richard Marshall, VP at (800) 738-1577
Visit us on the Internet: http://www.crystallex.com/
Email us at:
NOTE: This may include certain "forward-looking statements" within the meaning
of the United States Securities Exchange Act of 1934, as amended. All
statements, other than statements of historical fact, included in this
presentation, including, without limitation, statements regarding potential
mineralization and reserves, exploration results, and future plans and
objectives of Crystallex, are forward-looking statements that involve various
risks and uncertainties. There can be no assurance that such statements will
prove to be accurate, and actual results and future events could differ
materially from those anticipated in such statements. Important factors that
could cause actual results to differ materially from the Company's expectations
are disclosed under the heading "Risk Factors" and elsewhere in documents,
including but not limited to its annual information form ("AIF") and its annual
report on Form 20-F, filed from time to time with the Canadian provincial
securities regulators, the United States Securities and Exchange Commission
("SEC"), and other regulatory authorities.
The Toronto Stock Exchange has not reviewed this release and does not accept
responsibility for the adequacy or accuracy of this news release.
DATASOURCE: Crystallex International Corporation
CONTACT: Investors, A. Richard Marshall, VP of Crystallex International
Corp., +1-800-738-1577, or
Web site: http://www.crystallex.com/
Company News On-Call: http://www.prnewswire.com/comp/114620.html