Gold company Crystallex International Corp. announced on Monday that it would establish a joint venture (JV) with China Railway Engineering Corp (CREC) to develop the Las Cristinas Gold project in Venezuela.
CREC, owning one third of the JV's total shares, will be responsible for constructions of the project, while Crystallex, with the remaining shares, will be in charge of research and design.
Though the amount to be invested has not been disclosed, CREC has already injected $2.5 million in the project which is convertible into Crystallex shares at the price of $0.4 a share for at most 19.9 percent of the shares of the JV.
Las Cristinas is estimated to possess a reserve of 16.86 million ounces of gold.
Crystallex is a Canadian-based gold company with an 18-year history of building and operating gold projects in Venezuela.