Gold Reserve Inc. (GDRZF)

[Enterprising Investor]

Gold Reserve to Acquire Certain Alaska Mining Claims (1/13/16)

SPOKANE, Wash.--(BUSINESS WIRE)--Gold Reserve Inc. (TSX.V:GRZ) (OTCQB:GDRZF) (“Gold Reserve” or the “Company”) announces that its wholly-owned subsidiary Gold Reserve Corporation, a company existing under the laws of the State of Montana (“Gold Reserve Montana”), has entered into a Purchase and Sale Agreement (the “Agreement”) with Raven Gold Alaska Inc. (“Raven”), a wholly-owned subsidiary of Corvus Gold Inc., to acquire from Raven certain wholly-held Alaska mining claims, known as the LMS Gold Project (the “Property”), together with certain personal property (collectively, with the Property, the “Assets”). The transaction is fully arm’s length and remains subject to the approval of the TSX Venture Exchange (the “Exchange”).

The Agreement provides for an all-cash acquisition whereby Gold Reserve Montana will pay to Raven US$350,000 upon closing of the acquisition of the Assets.

Raven will retain a royalty interest with respect to (i) “Precious Metals” produced and recovered from the Property equal to 3% of “Net Smelter Returns” on such metals (the “Precious Metals Royalty”) and (ii) “Base Metals” produced and recovered from the Property equal to 1% of Net Smelter Returns on such metals, provided that Gold Reserve Montana has the option, for a period of 20 years from the date of closing of the acquisition, to buy back a one-third interest (i.e. 1%) in the Precious Metals Royalty at a price of US$4 million.

The Property consists of 36 contiguous State of Alaska mining claims covering 61 km² in the Goodpaster Mining District situated approximately 25 km north of Delta Junction and 125 km southeast of Fairbanks, Alaska, and is accessed either by winter road or river boat providing year-round, non-helicopter support access. Several trails have been constructed providing surface access across the property.

The Property remains at an early stage of exploration and is the subject of a National Instrument 43-101 Technical Report entitled “Technical Report on the LMS Gold Project, Goodpaster Mining District, Alaska,” dated October 22, 2014, prepared for Corvus Gold Inc. by Ed Hunter, BSc., P. Geo, and Gary H. Giroux, M.A. Sc., P. Eng., a copy of which is available for review under Corvus’ company profile at www.sedar.com.

The Company and Raven expect to close the acquisition as soon as final Exchange approval has been obtained.

Further information regarding the Company can be located at www.goldreserveinc.com, www.sec.gov and www.sedar.com.

http://www.businesswire.com/news/home/20160113005300/en/Gold-Reserve-Acquire-Alaska-Mining-Claims