Gold Reserve Provides Venezuela Update (8/14/18)
SPOKANE, Wash.--(BUSINESS WIRE)--Gold Reserve Inc. (TSX.V: GRZ) (OTCQX: GDRZF) (“Gold Reserve” or the “Company”) is pleased to provide an update on the payments related tothe previously announced Settlement Agreement with Venezuela(“Settlement Agreement”).
Under the terms of the Settlement Agreement Venezuela agreed to pay GoldReserve a total of approximately US $1.032 billion, comprised ofapproximately US $792 million in satisfaction of the arbitral ICSIDAward granted in favor of the Company and US $240 million for the saleof the Company’s technical mining data related to the Siembra MineraProject. The Company received today Venezuelan government bonds with anestimated current market value of approximately US$88.5 million aspayment towards the December 2017 and January and February 2018 monthlyinstallments due under the Settlement Agreement. As a result of thispayment the Company has received an aggregate of US $276 million(including payments made to the Company’s trust account with Bandes Bankin Venezuela). Venezuela remains 5 months in arrears (at US $29.5million per month) on its obligations under the Settlement Agreement.The Company and Venezuela are continuing discussions to facilitate thepayment of the arrears and future payments.
In addition, approximately US $8 million previously tendered by theVenezuelan government was transferred recently from the Company’s trustaccount in Venezuela to its bank account in North America, leavingapproximately US$37 million remaining in the trust account.
Senior Management of Gold Reserve has been in Caracas working withVenezuelan officials on matters related to the development of the largescale Siembra Minera Project. In addition, the Company is also advancingvarious social works programs in the project area relating to therehabilitation of medical, educational, and recreational facilitiesalong with engineering work related to landfills, sewage collection,water distribution systems and related treatment plants to facilitatethe transition of the area to accommodate a nearby major miningoperation. The Company is currently transporting a large sample of thesurface saprolite material to the United States for metallurgicaltesting which will aid in the final engineering design of the EarlyWorks Project.
Doug Belanger, President, stated, “We are very pleased with the receiptof bonds which confirms our partner’s commitment to meet its obligationsand advance one of the largest undeveloped gold-copper projects in theworld, despite their economic challenges. We look forward to continueworking with Venezuela towards that goal.”
Canaccord Genuity Corp. has been retained by the Company to providefinancial advisory and other services with respect to the bonds.
For further information regarding the Company can be located at www.goldreserveinc.com, www.sec.gov,and www.sedar.com. https://www.businesswire.com/news/home/20180814005612/en/