SPOKANE, Wash.--(BUSINESS WIRE)--Mar. 8, 2019--
Gold Reserve Inc. (TSX.V: GRZ) (OTCQX: GDRZF) (“Gold Reserve” or the
“Company”) reports that it currently has a cash balance of $167
million (including $21.5 million held in Bandes Bank and from the sale
of Venezuelan sovereign debt received in 2018) with current liabilities
of approximately $3 million. The Board of Directors have decided to
distribute to shareholders a minimum of $90 million with the final
distribution amount and method (which may require shareholder and/or
regulatory approvals) to be determined by the Board in the coming weeks.
In July 2016, we signed a Settlement Agreement, subsequently amended,
whereby Venezuela agreed to pay the Company $1.032 billion to satisfy
its ICSID Award (including interest) and to purchase our mining data
related to the Brisas Project. The ICSID Award has been recognized in
courts of the United States, France and Luxembourg and is not appealable
by Venezuela.
The Company has received approximately $276 million under the terms of
the Settlement Agreement with approximately $756 million remaining to be
paid by Venezuela. Of the amount due, approximately $354 million is in
arrears and if the Company determines an event of default, interest will
accrue commencing July 2016 at Libor plus 2% on all unpaid amounts and
the Company may recommence enforcement and collection of the Award.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This release contains “forward-looking statements” within the meaning
of applicable U.S. federal securities laws and “forward-looking
information” within the meaning of applicable Canadian provincial and
territorial securities laws and state Gold Reserve’s and its
management’s intentions, hopes, beliefs, expectations or predictions for
the future including without limitation statements with respect to
future payments under the Settlement Agreement, future distributions to
shareholders, if any, and the development of the Siembra Minera Project,
including social programs undertaken in the project area, currently or
in the future. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered reasonable by
management at this time, are inherently subject to significant business,
economic and competitive uncertainties and contingencies.
We caution that such forward-looking statements involve known and
unknown risks, uncertainties and other risks that may cause the actual
outcomes, financial results, performance, or achievements of Gold
Reserve to be materially different from our estimated outcomes, future
results, performance, or achievements expressed or implied by those
forward-looking statements, including without limitation the risks that
payments due under the Settlement Agreement continue to be delayed, the
Company may not receive future payments due under such agreement, the
Company may not be able to repatriate payments that are received,
imposition of further sanctions by the U.S., Canada or other
jurisdictions that may negatively impact our ability to freely transfer
funds from Venezuela or our ability to do business in Venezuela
including the development of the Siembra Minera project and the
activities planned to be undertaken in connection with the project area
may not proceed as anticipated.
This list is not exhaustive of the factors that may affect any of
Gold Reserve’s forward-looking statements. For a more detailed
discussion of the risk factors affecting the Company’s business,
including without limitation the effect of sanctions imposed by the
governments of the United States and Canada against dealings with
certain Venezuelan entities and individuals, see the Company’s Annual
Information Form and Management’s Discussion & Analysis for the year
ended December 31, 2017 which have been filed on SEDAR and are available
under the Company’s profile at www.sedar.com
and which form part of the Company’s Form 40-F for the year ended
December 31, 2017 which have been filed on EDGAR and are available under
the Company’s profile at www.sec.gov/edgar.
Investors are cautioned not to put undue reliance on forward-looking
statements. All subsequent written and oral forward-looking statements
attributable to Gold Reserve or persons acting on its behalf are
expressly qualified in their entirety by this notice. Gold Reserve
disclaims any intent or obligation to update publicly or otherwise
revise any forward-looking statements or the foregoing list of
assumptions or factors, whether as a result of new information, future
events or otherwise, subject to its disclosure obligations under
applicable rules promulgated by the Securities and Exchange Commission
and applicable Canadian provincial and territorial securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190308005250/en/
Source: Gold Reserve Inc.
Gold Reserve Inc.
A. Douglas Belanger, President
999 W.
Riverside Ave., Suite 401
Spokane, WA 99201 USA
Tel. (509)
623-1500
Fax (509) 623-1634