Business
Gold Reserve Announces Signing of an Earn-In Agreement with Augusta Capital to Expedite Venezuela Mining and Schedules Update Conference Call
Gold Reserve Ltd. (“Gold Reserve” or the “Company”) (TSX-V: GRZ, BSX:...
About this update from Gold Reserve Ltd.
[{"type":"text","content":"Gold Reserve Announces Signing of an Earn-In Agreement with Augusta Capital to Expedite Venezuela Mining and Schedules Update Conference Call\n\n\n\n\n\n\n Gold Reserve Ltd. (“Gold Reserve” or the “Company”) (TSX-V: GRZ, BSX: GRZ.BH, OTCQX: GDRZF) is pleased to announce that the Company has entered into a binding term sheet (the “Earn-In Agreement”) with Augusta Capital Corporation (“Augusta”), a company founded and led by Richard Warke, which has focused on mining investments and managing world-class mining projects for over 40 years, pursuant to which the Company and its wholly-owned subsidiary, GR Mining (Barbados) Inc., have granted Augusta an earn-in right in respect of 50% of Gold Reserve’s interest in the Siembra Minera property (the “Project”).\n \n\n The Company’s efforts to pursue its interest in the Project are ongoing. The original Project is beneficially owned 55% by a Venezuelan government corporation, and 45% by Gold Reserve. However, in April 2026, Venezuela enacted a new mining law which no longer requires mandatory state-majority participation in the gold and strategic-minerals sector, thereby creating a path for the Company to acquire an interest of up to 100% in the Project. Gold Reserve and Augusta will immediately begin working together to advance discussions with Venezuelan government officials in connection with the Project.\n \n\n Under the terms of the Earn-In Agreement, Augusta will have the right to acquire a 50% interest in Gold Reserve’s interest in the Project by funding US$200 million of expenditures to advance the Project in accordance with specified milestones (the “Earn-In”). As part of such milestones, Augusta must initially fund US$25 million of such project expenditures, which may include site revitalization and re-testing, within one year. The Company has agreed to match that initial funding. Augusta will serve as operator of the Project with overall operating responsibility. Following completion of the Earn-In, Gold Reserve and Augusta will form a joint venture company to hold their interest in the Project (the “Joint Venture”) and will fund the Project and share in the economic benefits generated by the Project\n \n pro rata\n \n as to their respective interests. The Join...