Crystallex (KRY-T) shares continue to be the definition of volatility, as a flurry of trading activity sent the Toronto-based company’s shares higher on word that the Venezuelan government may be pushing for the issuance of its environmental permit.
In Toronto on June 24 the company’s shares jumped 62% or 40 to get back over the one dollar mark at $1.05 on 9.1 million shares traded.
Crystallex says officials from the Venezuelan ministry of the environment told the company that the government had asked the ministry to reconsider the issuance of its needed environmental permit.
The company’s shares had been in a tailspin since the end of April after word reached Bay Street that the environmental permit had been denied.
According to Crystallex the government is now pushing the ministry of the environment to have more discussions with it with the aim securing more concession from the company.
Crystallex says those concessions would likely include a ramping up of social projects, doing more to mitigate the impact of mining in the Imataca forest reserve, improving remediation plans at the end of the mine life, and remediating damage caused by illegal miners in the area.
Crystallex also is gleaning some hope from another official meeting where the ministry of mines confirmed its support for the company and its compliance with all procedural and administrative steps.
While the company concedes it is too early for it to forecast if a resolution is possible it says it is “encouraged by the support from the Venezuelan government and national Assembly”.
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