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Crystallex
International Corporation (TSX:KRY - News)(AMEX:KRY - News) announced that it has filed a Request for
Arbitration 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
arbitration has been commenced following the failure of the Venezuelan
Government to propose any resolution to the dispute notified by Crystallex on
November 24, 2008 and the subsequent unlawful termination on February 3,
2011, of the Mine Operation Contract ("MOC") it had entered into
with Corporacion Venezolana
de Guayana ("CVG"). The claim is for
breach of the Treaty's protections against expropriation, unfair and
inequitable treatment and discrimination.
Crystallex
seeks the restitution by Venezuela of Crystallex's investments, including the
MOC, and 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.
About
Crystallex
Crystallex
International Corporation is a Canadian based company, whose principal asset
is its interest in the Las Cristinas gold project
located in Bolivar State, Venezuela. Crystallex shares trade on TSX (symbol:
KRY) and NYSE-Amex (symbol: KRY).
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains
forward-looking statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian securities
laws, including: statements relating to the expected timing of completion of
the transactions contemplated by the Agreement, estimated reserves and
resources at Las Cristinas; anticipated results of
drilling programs, feasibility studies or other analyses; the potential to
increase reserves and expand production, at Las Cristinas;
Crystallex's projected construction and production schedule, and cost and
production estimates, for Las Cristinas; and
management's statements regarding its expectations regarding mining in
Venezuela. Forward-looking statements are based on estimates and assumptions
made by Crystallex in light of its experience and perception of historical
trends, current conditions and expected future developments, as well as other
factors that Crystallex believes are appropriate in the circumstances. Many
factors could cause Crystallex's actual results, performance or achievements
to differ materially from those expressed or implied by the forward looking
statements, including: the conditions to the transactions contemplated by the
Agreement not being satisfied, gold price volatility; impact of any hedging
activities, including margin limits and margin calls; discrepancies between
actual and estimated production, between actual and estimated reserves, and
between actual and estimated metallurgical recoveries; mining operational risk;
regulatory restrictions, including environmental regulatory restrictions and
liability; risks of sovereign investment; speculative nature of gold
exploration; dilution; competition; loss of key employees; additional funding
requirements; and defective title to mineral claims or property. These
factors and others that could affect Crystallex's forward-looking statements
are discussed in greater detail in the section entitled "Risk
Factors" in Crystallex's Annual Information Form (which is included in
the Annual Report on Form 40-F that Crystallex files with the United States
Securities and Exchange Commission (the "SEC") and elsewhere in
documents filed from time to time with the Canadian provincial securities
regulators, the SEC and other regulatory authorities. These factors should be
considered carefully, and persons reviewing this press release should not
place undue reliance on forward-looking statements. Crystallex has no
intention and undertakes no obligation to update or revise any
forward-looking statements in this press release, except as required by law
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