Business
Gold Reserve reports on Venezuelan Government's failure to follow its own laws
SPOKANE, WA, May 26 /CNW/ - Gold Reserve Inc. (TSX:GRZ - NYSE-Amex:GRZ) commented today on an Off...
About this update from Gold Reserve Ltd.
[{"type":"text","content":"\n\n\n\nSPOKANE, WA, May 26 /CNW/ - Gold Reserve Inc. (TSX:GRZ - NYSE-Amex:GRZ)\ncommented today on an Official Gazette issued by the Government of Venezuela\ndated May 22, 2009 in which the Venezuelan Ministry of Mines (MIBAM) denied\nthe extension of the El Pauji concession. The Company does not own the El\nPauji concession but has an easement that allows the Company to use the El\nPauji surface rights for infrastructure purposes for the Brisas Project. The\nEl Pauji concession is part of a number of land parcels surrounding the ore\nbody located on the Brisas Alluvial and Veta concessions comprising the Brisas\ngold copper Project.\n\n\nAs part of the arrangement with the owner of the El Pauji concession, on\nJanuary 17, 2008 the Company applied for an extension of the concession term\npursuant to Article 25 of the Venezuelan mining law which provides MIBAM a\nsix-month period, ending on July 20, 2008, to deny the extension request.\nMIBAM did not respond to our request for an extension. Our Venezuelan\nattorneys have advised us that, pursuant to Article 25 of the mining law, the\nextension is automatically granted.\n\n\nIgnoring its own regulations and laws, MIBAM thru internal reports dated\nApril 29, 2009 and May 12, 2009, almost one year after the six month time\nperiod elapsed, asserts without evidence or prior notice that the Company is\nnot in compliance with its obligations in regards to the concession. In\nSeptember 2008 the Company received a certificate of compliance from MIBAM\nregarding the Brisas Project.\n\n\nMIBAM states in the Official Gazette that the Company timely filed an\napplication for extension and acknowledged that MIBAM made its evaluation on\nthe status of the concession subsequent to the six month time period\npromulgated in Article 25 of the mining law. The Company, acting on behalf of\nthe owner of the El Pauji concession, will actively defend its legal rights as\ndefined under Venezuelan law.\n\n\nThe Company also applied for the extension of the Brisas del Cuyuni\nalluvial gold concession in late 2007, having met all legal requirements with\nno response from MIBAM during the subsequent six month time period. We have\nbeen advised by our Venezuelan attorneys that the application is approved\npursuant to Article 25 of the mining law. It is important to note that the\nBrisas del Cuyuni alluvial g...