GW

The medical facility was essentially completed last month. The problem, as I see it, is that the Vennies either don't know which institutions in Venezuela will run the sewage plant and medical facility or they are intentionally delaying taking over the operation of both facilities so as to put in doubt KRY's completion?

I'm not sure what the determination is on completion? Do both plants have to be commissioned and accepted by Venezuela in order to legally be considered complete? Do certain quality standards have to be accepted and then KRY turns over the keys by way of a legal letter advising Venezuela of completion?

I think the Vennies really don't know what to do. On the one hand the quickest and most direct route to the gold is via KRY, KRY's technicals and equipment. On the other hand the Vennies appear to want to JV Las Cristinas with the Russians (Rusoro I assume) using Gazprombank's cash advances by way of crude shipments. So what do they do knowing they have a legal problem and potential heavy losses at arbitration?

I think their hope is that someone else will solve their problem for them by forcing KRY into the hands of someone else? Perhaps Rusoro?

With time running out and KRY's cash position declining, the chances of Venezuela offering any reasonable settlement appear slim. The chances of a permit look slim as well.

My preference would be arbitration, to make Venezuela pay for breach of contract. Find some settlement with the noteholders and raise some cash for arbitration.

Strange things can happen and I still wouldn't rule out GRZ helping out KRY's cause!

Cheers

Teutracker