VANCOUVER - CRYSTALLEX INTERNATIONAL CORPORATION (symbol KRY on TSE and Amex) announced today the completion of the January 25, 2001 take-over bid made by its wholly-owned subsidiary, 618707 British Columbia Ltd., to acquire any and all of the common shares of El Callao Mining Corp. ("ECM"). The shares of ECM deposited to the offer totalled 36,575,832, representing approximately 80% of the outstanding shares of ECM. 618707 British Columbia Ltd. assigned its rights under the bid to Crystallex and Crystallex took up and paid for the ECM shares today by issuing an aggregate of 2,438,352 common shares of Crystallex.
Concurrently with the completion of the take-over bid, Crystallex closed its previously announced acquisition from Bema Gold Corporation of assets related to ECM. The principal asset purchased from Bema, previously ECM's largest shareholder, is its shareholder loan to ECM. In total, ECM's loan from Crystallex now totals approximately US$15.7 million. The loan is due March 31, 2001 and is fully secured against the assets of ECM.
The Lo Increible Project is a 10,000-hectare property, consisting of six open pittable deposits within 5 to 15 kilometres of Crystallex's Revemin mill, which was acquired along with the Tomi mine in 2000. The Project has been in active development since its purchase by Bema and subsequent transfer to ECM in 1993. A study released by ECM in 1999 recommended the construction of a 3,000 tonne per day processing plant. Crystallex has already begun a phased expansion of its current 1,500 tonne per day Revemin mill to increase its capacity to 3,000 tonnes per day as recommended by the ECM study. The cost of the expansion is expected to be modest and will be adequately covered by capital provided by a previously announced credit facility.
Within the coming weeks, Crystallex plans to commence an initial 10,000 metre diamond drill program on the Lo Increible deposits to prove up the reserves and, after a final feasibility study, to put the deposits into production in late 2001 or early 2002.
Crystallex's President and Chief Executive Officer, Marc J. Oppenheimer, commented that the Lo Increible Project will significantly extend the Company's Venezuelan reserves. "This adds a very important property to our line of concessions in Venezuela. The close proximity of these large deposits to our Revemin mill enables us to increase our annual gold production and to do it at attractive margins, even in today's soft gold market."
Crystallex International Corporation is a gold mining and exploration company. The Company's strategy for growth is to develop its portfolio of properties in South America as well as to diversify geographically by investing in producing or near-production projects and by exploring properties of merit in other areas of the world.
On Behalf of the Board:
Marc J. Oppenheimer, President & CEO
Note: This news release may contain certain "forward-looking statements" within the meaning of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Crystallex, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" and elsewhere in documents filed from time to time with The Toronto Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contact: A Richard Marshall, VP at (201) 541-6650 ext. 26 or Andrea Boltz at (604) 683-0672.
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