Business
Gold Reserve Comments on News Reports Regarding Brisas
SPOKANE, WA, Jan. 14 /CNW/ - Gold Reserve Inc. (NYSE Alternext: GRZ) (TSX: GRZ) has reviewed seve...
About this update from Gold Reserve Ltd.
[{"type":"text","content":"\n\n\n\nSPOKANE, WA, Jan. 14 /CNW/ - Gold Reserve Inc. (NYSE Alternext: GRZ)\n(TSX: GRZ) has reviewed several news reports related to remarks by Venezuelan\nPresident Hugo Chavez concerning the Venezuelan government plans to jointly\ndevelop the Las Cristinas deposit and Gold Reserve's Brisas deposit. We\nunderstand President Chavez also referred to the formation of VENRUS CA, a\njoint venture between Rusoro Mining Ltd.'s ("Rusoro") (TSX-V: RML.V) and the\nVenezuelan government, to develop and exploit these deposits.\n\n\nGold Reserve has had no communication from the government of Venezuela\nwith respect to this matter. Gold Reserve also notes that there has been no\ndisclosure concerning the formation of such a joint venture by Rusoro in its\npublic filings.\n\n\nGold Reserve has invested US $230 million in proprietary work in Brisas\nincluding amongst other things, drilling and assaying, metallurgical,\ngeotechnical, environmental and comprehensive feasibility studies, equipment\nand detailed engineering for the project.\n\n\nIn the event that the government of Venezuela decides to proceed in this\nmanner, Gold Reserve believes that it has alternatives to realize considerable\nvalue related to its Brisas investment. Gold Reserve could entertain an offer\nfrom the Venezuelan government or its joint venture partner to purchase the\nCompany's assets and proprietary work. If the purchase amount is adequate then\nthis would be beneficial in the near term to Gold Reserve and save the\npurchaser several years of time in duplicating our work.\n\n\nIf a mutually agreeable purchase price could not be determined or other\nsatisfactory resolution is not found then Gold Reserve has remedies to protect\nits investment in Brisas under Venezuela's domestic legal system, or under\nbilateral investment treaties to which Venezuela is a party. In the case of\naccessing bilateral investment treaties, Gold Reserve would seek the recovery\nof its US $230 million investment, plus potential lost profits of several US $\nbillion.\n\n\nThe value of Rusoro's proposed take-over is substantially less than the\nvalue of the Company's net cash, equipment and Brisas investment. In its\nDirectors' Circular and Schedule 14D-9, the Gold Reserve Board strongly\nrecommends that all Gold Reserve shareholders reject the Rusoro Offer and not\ntender their ...