Business
Gold Reserve announces sale of certain equipment
SPOKANE, WA, Oct. 10 /CNW/ - Gold Reserve Inc. (TSX:GRZ - AMEX:GRZ) announced it has agreed to se...
About this update from Gold Reserve Ltd.
[{"type":"text","content":"\n\n\n\nSPOKANE, WA, Oct. 10 /CNW/ - Gold Reserve Inc. (TSX:GRZ - AMEX:GRZ)\nannounced it has agreed to sell one SAG mill, two ball mills (35,000 tonne per\nday through-put) and related motors currently being manufactured for the\nCompany's Brisas Project. The total value of this transaction is approximately\n$43 million. The Company will recover approximately $18 million of progress\npayments and the purchaser will assume the Company's remaining payment\nobligations related to the equipment of approximately $25 million.\n\n\nThe Company's decision is consistent with its intention to stay\nfinancially strong by recovering amounts already paid and reducing future\nobligations. The sale of this equipment is not expected to impact the start-up\nof the Brisas Project to the extent the current delays in Venezuela are\nresolved. The Company will continue its manufacturing commitment for one SAG\nmill and two ball mills, related motors and peripheral equipment,\ndemonstrating our current commitment to the Brisas Project. Initially, the\nBrisas Project would be expected to proceed with reduced capital costs and\n35,000 tonnes per day through-put as a result of this sale. This modification\nshould not impact the Company's ability to increase production to 70,000\ntonnes per day through-put or greater thereafter.\n\n\nDoug Belanger, President, stated, "The sale of this equipment reduces our\nnear-term financial burden, but still allows us to initiate the Brisas Project\nto the extent the current delays related to Brisas are resolved. We are\ncontinuing our support of various social, cultural, health and environmental\nprograms in the immediate and surrounding areas near Brisas, further\ndemonstrating our commitment to the Brisas Project. At the request of MinAmb\nand MIBAM, we have prepared a number of proposals over the past months to\nassist in responding to the Government's concerns related to mining in the\nImataca Forest Reserve and the K-88 area. We continue to believe that the\nBrisas Project could be an active participant in facilitating the ultimate\nresolution to the issues identified by MinAmb and MIBAM. Subsequent to the\ncompletion of this transaction the Company will hold cash and investments of\napproximately $120 million or over $2 per outstanding share."\n\n\nGold Reserve Inc. is a Canadian company, which holds ...