TORONTO (Reuters) - The Supreme Court of Canada said on Thursday it will not hear an appeal from noteholders of Crystallex International CRYFQ.PK, who were trying to overturn lower court decision approving the Canadian gold miner’s debtor-in-possession financing.
Crystallex rose to prominence in the early 2000s after winning a contract to develop the massive Las Cristinas gold deposit in Venezuela. Tbe company collapsed after the government abruptly withdrew the contract in 2007.
It filed for bankruptcy in December 2011 and won protection under the Companies’ Creditors Arrangement Act in Canada as it struggled to finance its C$100 million ($102 million) of debt.
In April 2012, Crystallex was granted debtor-in-possession financing to fund its operations, including an arbitration claim against the government of Venezuela over the mining contract.
Crystallex is seeking $3.8 billion in restitution over Las Cristinas, which is estimated to contain 17 million ounces of gold.
Reporting by Julie Gordon; Editing by Peter Galloway