Crystallex shares rise more than 20 percent

Reuters, 06.16.03, 12:23 PM ET    TORONTO, June 16 (<a href=>Reuters) - Crystallex International Corp.'s <KRY.TO> <KRY.A> shares rose more than 20 percent on Monday before retreating, and an analyst cited a report in a newsletter suggesting the gold miner may be a takeover target. Its shares were up 10.68 percent, or 25 Canadian cents, to C$2.59 on the Toronto Stock Exchange on Monday morning on hefty volume of 929,013 shares. The shares had climbed as high as C$2.86. The stock has been heavily traded since early June, enjoying some of its busiest sessions in almost two years. Since June 6, it has risen 110 percent. At the prompting of the Toronto Stock Exchange, the company issued a brief statement on Monday that it was "unaware of any corporate developments which would account for the recent increase in its stock price and trading volume." One market analyst said there was acquisition chatter about the company in recent weeks. He said the rumors had been fueled by remarks in a market newsletter. "There's been lots of talk of takeover activity...the stock is very cheap," said John Ing, president of Maison Placements Canada. "The stock has in the last week traded more than 10 million shares, I think, on this rumor. Whether it's true or not, who knows? But that's the rationale for it moving." Crystallex spokesman Richard Marshall said the company does not comment on rumors. Crystallex has operations in Uruguay and in Venezuela, where it won a contract to operate the Las Cristinas mine last year -- one of the world's largest undeveloped gold deposits -- after years of legal wrangling. "Fundamentally, the stock has been undervalued," Ing said. "There have been ownership question marks. But those ownership question markets have been cast aside as the Venezuelan government itself has made known that there is no question...as to the Crystallex ownership of Las Cristinas." ($1=$1.34 Canadian)