Good post pen.

I think we should start looking at this from a different perspective.

Before this deal we were trying to get VZ to give Kry the permit which we rightfully earned. Everyone had an opinion why we didn't get it or when we would based on Kry being in the right. Unfortunately Hugo decided that we weren't getting the permit. He wanted the Russians or Chinese to mine LC and other properties. The reason could have been as simple as Luis Cottin and the coup or some other vendetta against the US and Canada. The reason doesn't really matter. All that really matters is the had/has a 100% valid MOC that VZ doesn't want to honor. If we assume this to be true then as RC would say we had no chance of getting the permit.

What were our options? The only one left was arbitration which we should win based on facts but still a gamble. So what has Fung really done? He did what he does best.

RF has put the ball in VZ court by giving Hugo what he wanted. A Chinese company to mine LC. Our deal puts the responsibility of obtaining the permit in the hands of CRRC. Many people keep talking about giving up 2/3 of LC but in reality we have exchanged going to arbitration with VZ for 1/3 of a permitted LC. NO PERMIT NO DEAL!

Some have wondered why CRRC or some other company wouldn't just wait till VZ forced Kry into bankruptcy or arbitration. They wouldn't have to split the mine with Kry this way. What does CRRC get from Kry that they couldn't have gotten from VZ. The answer is a valid MOC that is better than the current JV agreements VZ is doing with Russia. This MOC gives the KRY/CRRC JV 60% of the profits. It also gives CRRC a binding MOC should the need arise to take VZ to court down the road.

Fung has given Kry shareholders a chance to have their shares valued based on mining gold rather than an arbitration court case. Is there a chance CRRC doesn't get the permit? Sure there is but at least now we have a PP for $40 million to continue the fight in court.

This deal lets Hugo save face by issuing the permit to the Chinese Crystal Railway. It lets the Chinese mine LC at a more favorable rate that the current JV set ups. It lets Kry shareholders a chance to see some real coin.

WIN WIN WIN