UPDATE 1-Crystallex says Las Cristinas challenge denied
Fri May 30, 2008 2:20pm EDT
TORONTO, May 30 (Reuters) - Crystallex International (KRY.TO: Quote, Profile, Research) said on Friday its legal rebuttal of a Venezuelan government decision to deny it permits to mine the Las Cristinas gold deposit has not been accepted.
The Canadian-based company said in a statement it has received a communication from the Venezuelan environment ministry advising it of the ministry's decision. The company has 15 business days to appeal, it said.
"Crystallex has instructed its legal counsel to prepare an appeal," the company said. "Crystallex has a number of legal avenues to pursue both in and out of Venezuela in order to project its shareholders' rights."
Crystallex has for years been trying to get final permission to mine the deposit, which has proven and probable reserves of 17 million ounces.
It had thought it was close to getting the final go-ahead, but then found out last month that the environment ministry planned to shut down mining in the region.
The company's stock, which has fallen 50 percent since then, was down 2 Canadian cents at 78 Canadian cents on the Toronto Stock Exchange on Friday afternoon. ($1=$0.99 Canadian) (Reporting by Cameron French; Editing by Peter Galloway)
