SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
Report
of Foreign Private Issuer
Pursuant
to Rule 13a-16 or 15d-16 of
the
Securities Exchange Act of 1934
For
the month of,
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May
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2008
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Commission
File Number
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001
-
14620
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Crystallex
International Corporation
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(Translation
of registrant’s name into English)
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18
King Street East, Suite 1210, Toronto, Ontario, Canada M5C
1C4
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(Address
of principal executive offices)
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Indicate by check mark whether the
registrant files or will file annual reports under cover of Form 20-F or Form
40F:
Indicate by check mark if the
registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):
Indicate
by check mark whether by furnishing the information contained in this Form, the
registrant is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
If “Yes” is marked, indicate below the
file number assigned to the registrant in connection with Rule
12g3-2(b): 82-_______________
DOCUMENTS INCLUDED AS PART OF THIS
REPORT
Document
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1
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Press
Release, dated May 15, 2008.
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Document
1
For
Immediate Release
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May
15, 2008
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RM:
5 – 08
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Crystallex
Reports Q1 2008 Financial Results
TORONTO,
ONTARIO,
May
15
, 2008 –
Crystallex
International Corporation (TSX: KRY) (Amex: KRY)
today reported its
financial results for the quarter ended March 31, 2008. The Company prepares its
consolidated financial statements in U.S. dollars and in accordance with
Canadian Generally Accepted Accounting Principles. The consolidated
financial statements along with management’s discussion and analysis will be
available for viewing on the Crystallex International Corporation website at
www.crystallex.com
.
The Documents have been filed with SEDAR (
www.sedar.com
)
and should be available on SEDAR.
Crystallex
President and CEO, Gordon Thompson commented, “On April 30, 2008 we were advised
that the Las Cristinas concession holder, Corporacion Venezolana de Guayana
(“CVG”) had received a letter from a Director General at the Ministry of
Environment denying its request for the Environmental Permit allowing the
construction of the Las Cristinas Project. On May 12, 2008,
Crystallex
filed the legal rebuttal to the position taken by the Director General in his
letter.”
Mr.
Thompson noted, “The Communication from this Director General of the Ministry of
Environment and Natural Resources is in conflict with the Las Cristinas
Environmental Impact Study approval. Since the contents of the Director
General’s letter became public, local and indigenous communities, and Venezuelan
Officials have voiced continued support for the development of the Las Cristinas
project and other mining projects in the region.
We
are continuing efforts with the support of Venezuelan governmental agencies to
advance the Project. Las Cristinas has been designed to the highest
environmental standards and we are confident the benefits of the Project to the
Venezuelan people and especially the employment opportunities for Bolivar State
and surrounding communities will be recognized.”
Overview
The
Company is engaged in the production of gold and related activities including
exploration, development, mining and processing in Venezuela. The Corporation’s
principal asset is its interest in the Las Cristinas gold project located in
Sifontes, Bolivar State, Venezuela. The Corporation’s other assets include the
Tomi operations, the Lo Incréible properties (which include the La Victoria
deposit), and the Revemin mill, all of which are located in Bolivar State,
Venezuela (the “El Callao operations”).
Las
Cristinas – Permitting Status
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▪
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On
April 30, 2008, the Company reported that it became aware that the
Director General of the Administrative Office of Permits at the Ministry
of Environment and Natural Resources, (“MinAmb”) had issued a letter to
the Corporacion Venezolana de Guayana (“CVG”) denying its request for the
Authorization to Affect Natural Resources (the “Permit”) for the Las
Cristinas project.
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▪
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The
Company believes that this communication contradicts the Environmental
Impact Study approval process, conflicts with various Government Decrees
and Resolutions, appears to be in opposition to all mineral mining in the
Imataca Forest Region (which includes Las Cristinas) and stands contrary
to current and historic mining projects in
Venezuela. Accordingly, on May 12, 2008, the Company filed a
legal rebuttal to the position taken by the Director General of Permits at
MinAmb.
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Liquidity
and Capital Resources
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▪
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On
February 11, 2008, the Company closed a public equity financing of 32.9
million units for net proceeds of $64.3 million.
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▪
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Cash
and cash equivalents at March 31, 2008 were $67.2
million.
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▪
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The
Company forecasts that it will have cash to fund its operations until
approximately June 2009 assuming expenditures continue at the same
pre-Permit level as before the communication from the Director General of
Permits at MinAmb denying CVG’s request for the Permit. In the
event of a negative outcome in its appeal of the MinAmb directive relating
to the Permit, or a prolonged appeal process, the Company will re-assess
its planned expenditures.
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Financial
Performance
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▪
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First
quarter net loss of $11.2 million, or $0.04 per share including $6.1
million unrealized loss on translation of future income
taxes.
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▪
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Loss
of $0.6 million from operations at El Callao (the loss is inclusive of
exploration expenditures of approximately $0.8
million).
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▪
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Expenditures
of $5.5 million on Las Cristinas.
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Las
Cristinas – Permitting
During
2007, the CVG was formally notified by MinAmb that all the requirements for the
issuance of the Permit had been fulfilled. MinAmb approved the EIS for the Las
Cristinas gold project, and requested the CVG post a construction compliance
guarantee bond and pay certain environmental taxes. Crystallex posted the
requested bond and paid the requested taxes. No impediments were raised in
discussions at that time with Government officials, who subsequently confirmed
that the Company was in good standing for the issuance of the
Permit.
The
Company received additional support for the issuance of the Permit in the fall
of 2007, when the Venezuelan National Assembly's Commission of Economic
Development reviewed the protracted timeline for the issuance of the Permit.
Following its October 4th, 2007 hearings, the Commission issued a report noting
that representatives from MinAmb, the Ministry of Basic Industry and Mines
(“MIBAM”), the CVG and Crystallex had testified at their hearings. The
Commission's report concluded that the CVG and Crystallex had complied with the
feasibility study and other legal and technical requirements, thus allowing for
the Permit to be granted by MinAmb. The Chairman of the Commission recommended
MinAmb grant the Permit.
In early
2008, Mr. Rodolfo Sanz was appointed the Minister of MIBAM and President of the
CVG, having direct involvement with the Las Cristinas project in both
capacities. Crystallex officials have met with Minister Sanz and further
meetings are anticipated.
On April
30, 2008, the Company reported that a Director General in the Administrative
Office of Permits at MinAmb had issued a communication to the CVG, the
concession holder of the Las Cristinas concessions, that the Office of Permits
in the Ministry had denied the request of the CVG for the Permit. Since being
advised of the letter, Crystallex has had the opportunity to meet with Officials
of both the Government of Venezuela and the CVG and has begun the process of
seeking the reversal of the Director General’s communication in order to bring
the Las Cristinas gold deposit into production.
On May
12, 2008, Crystallex filed the legal rebuttal to the position taken by the
Director General of Permits in the MinAmb. The Director General at MinAmb who
issued the letter has, under the administrative law of Venezuela, 15 business
days to reply formally. If there is no reply, under law the answer is deemed to
be negative. At that time, the Company has the legal right to appeal
directly to the Minister of MinAmb who also has a set time (90 business days) to
issue
a finding. If at that time the answer is
negative, Crystallex has a number of legal avenues to pursue both in and out of
Venezuela in order to protect its shareholders’ rights.
The
communication from this Director General at MinAmb is in conflict with the Las
Cristinas Environmental Impact Study approval, the Construction Compliance
Guarantee Bond (the “Bond”) request and Environmental Tax (the “Tax”) request
issued by MinAmb. Both the posting of the Bond and payment of the requested Tax
were satisfied in 2007 and Crystallex obtained receipt of acceptance. This
communication appears to be in opposition to all mineral mining in the Imataca
Forest Region. In the opinion of Crystallex’s management, the communication in
question also leaves a number of current and historic projects standing contrary
to the communication. In addition, Crystallex believes that the content of the
letter contradicts Presidential Decrees, National Assembly Resolutions, MinAmb
Resolutions, and MIBAM Resolutions.
Since the
contents of the Director General’s letter became public, local and indigenous
communities, and Venezuelan Officials have voiced continued support for the
development of the Las Cristinas project and other mining projects in the
region. Crystallex has also become aware that the Venezuelan National Assembly
intends to hold hearings regarding the Director General’s letter and the status
of the Las Cristinas project.
The
Company is currently continuing its efforts with the support of Venezuelan
governmental agencies to advance the Las Cristinas project which will create
significant employment, healthcare facilities and sustainable development for
the surrounding communities. In particular, as part of its corporate and social
responsibility commitments under the Las Cristinas Mining Operation Contract,
the Company commenced construction of a new medical centre and sewage treatment
plant to serve local communities in the vicinity of the Las Cristinas
project. Both projects are well advanced and are scheduled for
completion in 2008. The Company has remaining expenditures of
approximately $3.5 million on these projects (including associated paving
projects).
Summary
of Quarterly Results (Unaudited)
$,000 except per
share
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2008
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2007
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Q1
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Q4
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Q3
(Amended)
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Q2
(Amended)
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Revenue
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$5,901
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$4,809
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$2,188
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$2,848
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Net loss previously
reported
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-
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-
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($9,256)
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($13,703)
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Adjustment to unrealized
gain
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-
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2,534
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1,580
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Net loss as
amended
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$(11,202)
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$(8,787)
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$(6,722)
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$(12,123)
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Per share
–
Basic and
diluted
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$(0.04)
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$(0.03)
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$(0.0
3)
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$(0.05)
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$,000 except per
share
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2007
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2006
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Q1
(Amended)
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Q4
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Q3
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Q2
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Revenue
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$3,720
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$5,720
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$9,769
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$5,520
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Net loss previously
reported
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($12,071)
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($11,617)
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($8,815)
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($8,296)
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Adjustment to unrealized
gain
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9,252
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-
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-
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-
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Net loss as
amended
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$(2,819)
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($11
,617)
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($8,815)
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($8,296)
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Per share
–
Basic and
diluted
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$(0.01)
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$(0.04)
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$(0.04)
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$(0.04)
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The
Q1 to Q3 2007 net loss have been amended to reflect the 2007 year end
adjustments to unrealized gains as discussed in the 2007 Annual MD&A and in
Note 10 to the Consolidated Financial Statements for the year ended December 31,
2007.
About Crystallex
Crystallex
International Corporation is a Canadian based gold producer with significant
operations and exploration properties in Venezuela. The Company’s principal
asset is the Las Cristinas property in Bolivar State that is currently under
development at the initial planned production rate of 20,000 tonnes of ore per
day. Other key assets include the Tomi Mine, certain Lo Increible properties and
the Revemin Mill. Crystallex shares trade on the TSX (symbol: KRY) and AMEX
(symbol: KRY) Exchanges.
For
Further Information:
Investor
Relations Contact: A. Richard Marshall, VP at (800) 738-1577
Visit
us on the Internet:
http://www.crystallex.com
or Email us at:
info@crystallex.com
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain statements included or
incorporated by reference in this news release, including information as to the
future financial or operating performance of the Company, its subsidiaries and
its projects, constitute forward-looking statements. The words “believe,”
“expect,” “anticipate,” “contemplate,” “target,” “plan,” “intends,” “continue,”
“budget,” “estimate,” “may,” “schedule” and similar expressions identify
forward-looking statements. Forward-looking statements include, among
other things, statements regarding targets, estimates and assumptions in respect
of gold production and prices, operating costs, results and capital
expenditures, mineral reserves and mineral resources and anticipated grades and
recovery rates. Forward-looking statements are necessarily based upon
a number of estimates and assumptions that, while considered reasonable by the
Company, are inherently subject to significant business, economic, competitive,
political and social uncertainties and contingencies. Many factors
could cause the Company’s actual results to differ materially from those
expressed or implied in any forward-looking statements made by, or on behalf of,
the Company. Such factors include, among others, risks relating to
additional funding requirements, reserve and resource estimates, gold prices,
exploration, development and operating risks, illegal miners, political and
foreign risk, uninsurable risks, competition, limited mining operations,
production risks, environmental regulation and liability, government regulation,
currency fluctuations, recent losses and write-downs and dependence on key
employees. See “Risk Factors” below or in the Company’s 2007
40-F/Annual Information Form. Due to risks and uncertainties, including the
risks and uncertainties identified above, actual events may differ materially
from current expectations. Investors are cautioned that forward-looking
statements are not guarantees of future performance and, accordingly, investors
are cautioned not to put undue reliance on forward-looking statements due to the
inherent uncertainty therein. Forward-looking statements are made as
of the date of this Management Discussion and Analysis and the Company disclaims
any intent or obligation to update publicly such forward-looking statements,
whether as a result of new information, future events or results or
otherwise.
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly
authorized.
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CRYSTALLEX INTERNATIONAL
CORPORATION
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(Registrant)
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Date:
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May
16, 2008
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By:
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/s/
Hemdat
Sawh
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Name: Hemdat
Sawh
Title: Chief
Financial Officer
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