Crystallex International Corporation: Press Release 6/29/2006
TORONTO, ONTARIO, Jun 29, 2006 (CCNMatthews via COMTEX News Network) -- Crystallex International Corporation (the "Corporation") (TSX:KRY) (AMEX:KRY) announced today that, due to recent volatility in the trading price of its common shares, it has agreed to amend the terms of the original agreement to amend 2,197,727 unlisted common share purchase warrants (the "Warrants") held by a holder in the United States as disclosed in the Corporation's news release dated June 9, 2006. Each Warrant currently entitles the holder to acquire one common share in the capital of the Corporation at an exercise price of US$2.75 per share until September 15, 2006. The proposed amendment to the Warrants is subject to receipt of all necessary regulatory and stock exchange approvals.
Pursuant to the revised terms of the proposed amendment to the Warrants, the Corporation has agreed to issue approximately 0.398 new common share purchase warrants (the "New Warrants") in exchange for each Warrant exercised. Each New Warrant will entitle the holder thereof to acquire one common share in the capital of the Corporation at an exercise price of US$4.00 per share until the date which is two years from the date of issuance of the New Warrants. The exercise price of the New Warrants represents approximately a 45% premium to the closing price of the common shares of the Corporation on the American Stock Exchange on June 28, 2006. Other than as described above, the New Warrants will have the same terms and conditions as the Warrants. The holder has agreed to exercise the Warrants on the date on which the Corporation receives all necessary regulatory and stock exchange approvals for the amendment to the Warrants.
Upon the exercise of the Warrants, the Corporation will realize gross proceeds of approximately US$6.04 million and be required to issue an aggregate of 875,000 New Warrants.
In light of the recent volatility in the trading price of its common shares, the Corporation does not intend to proceed with the proposed amendment to the terms of the other common share purchase warrants issued on September 8, 2003 which was originally announced on June 9, 2006.
Crystallex International Corporation is a Canadian gold producer with operations and exploration properties in Venezuela. The Company's principal asset is its interest in the Las Cristinas property in Bolivar State that is currently under development. Other 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).
SOURCE: Crystallex International Corporation
Crystallex International Corporation Investor Relations Contact: A. Richard Marshall, VP (800) 738-1577 info*crystallex.com www.crystallex.com
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