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Gold Reserve notifies Venezuelan Government of investment dispute
SPOKANE, WA, April 21 /CNW/ - Gold Reserve Inc. (TSX:GRZ - NYSE-Amex:GRZ) announced today that it...
About this update from Gold Reserve Ltd.
[{"type":"text","content":"\n\n\n\nSPOKANE, WA, April 21 /CNW/ - Gold Reserve Inc. (TSX:GRZ - NYSE-Amex:GRZ)\nannounced today that it has notified the Bolivarian Republic of Venezuela of\nthe existence of a dispute between the Company and the Venezuelan Government\nunder both: (1) the Agreement between the Government of Canada and the\nGovernment of the Republic of Venezuela for the Promotion and Protection of\nInvestments ("Canada - Venezuela Treaty") and (2) the Agreement between the\nGovernment of Barbados and the Government of the Republic of Venezuela for the\nPromotion and Protection of Investments ("Barbados-Venezuela Treaty").\n\n\nThis dispute has arisen primarily as a result of the Venezuelan Ministry\nof Environment's formal notification in May 2008 revoking the March 2007\npermit or Authorization for the Affectation of Natural Resources for the\nConstruction of Infrastructure and Services Phase of the Brisas Project. The\nCompany has taken this action as a result of the Venezuelan Government's\nfailure to reinstate the March 2007 authorization and the lack of any\nmeaningful dialog to resolve the prolonged obstruction of our rights to the\nBrisas Project.\n\n\nIt is our intent to settle the dispute amicably. However, if the dispute\nis not settled amicably, the Company may file for international arbitration at\nanytime under the Barbados-Venezuela Treaty or after six months from the date\nof notification under the Canada-Venezuela Treaty. In the event the Company is\ncompelled to file for international arbitration, we would make a claim for the\nfair market value of our investment at the time of the revocation which we\nbelieve was in excess of US$5 billion. In May 2008, the time of the\nrevocation, the price of gold and copper was $880 per ounce and $3.75 per\npound, respectively.\n\n\nGold Reserve Inc. is a Canadian company, which holds the rights to the\nBrisas gold/copper project and the Choco 5 gold exploration property in\nBolivar State, Venezuela.\n\n\nFORWARD-LOOKING STATEMENTS\n\n\nThis release contains forward-looking statements that may state Gold\nReserve's or its management's intentions, hopes, beliefs, expectations or\npredictions for the future. In this release, forward-looking statements are\nnecessarily based upon a number of estimates and assumptions that, while\nconsidered reasonable by management at this...