SPOKANE, Wash.--(BUSINESS WIRE)--Jul. 18, 2017--
Gold Reserve Inc. (TSX.V: GRZ) (OTC: GDRZF) (“Gold Reserve” or the
“Company”) is pleased to announce that on July 14, 2017 it completed its
previously announced redemption of a portion of its outstanding senior
notes which, together with the conversion of senior notes at the
election of certain noteholders, has resulted in the Company reducing
its outstanding debt by approximately US $28.3 million.
In connection with the partial redemption, the Company redeemed
approximately US $21.1 million in aggregate principal amount of its
outstanding senior notes, comprising approximately US $16.6 million of
its 11% Senior Secured Convertible Notes due 2018 (the “Convertible
Notes”) and approximately US $4.5 million of its 11% Senior Secured
Interest Notes due 2018 (the “Interest Notes” and together with the
Convertible Notes, the “Notes”). In addition, certain noteholders, at
their election, have converted approximately US $7.2 million aggregate
principal amount of Notes (including $6.6 million aggregate principal
amount of Notes converted at the election of certain noteholders in lieu
of the redemption of such Notes).
The Notes were redeemed for cash at a redemption price of 120% of the
outstanding principal amount of the redeemed notes plus accrued interest
to the redemption date. Accordingly, the total redemption price paid by
the Company included approximately US $4.0 million related to the
redemption premium and accrued and unpaid interest on the Notes. The
redemption was made pursuant to the indenture governing the Notes and
the terms of the notice of redemption.
Following the redemption and Note conversions described above, the
Company has US $25.9 million and US $4.9 million of Convertible Notes
and Interest Notes outstanding, respectively, for a combined total of
approximately US $30.8 million. The Company issued approximately 2.4
million additional Class A common shares in connection with the
conversions described above, resulting in approximately 92.3 million
shares outstanding. In the event the remaining outstanding Convertible
Notes are converted to Class A common shares, the Company would have
approximately 100.9 million shares issued and outstanding.
Gold Reserve intends to apply the proceeds of additional payments
received pursuant to its settlement agreement (the “Settlement
Agreement”) with the Bolivarian Republic of Venezuela (“Venezuela”), net
of applicable taxes, to redeem the remaining outstanding Notes in
accordance with the requirements of the indenture, including the
proceeds of the installment payment that the Company announced it had
received on July 11, 2017.
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 the
payments contemplated by the Settlement Agreement and Gold Reserve’s
redemption of additional Notes following receipt of such payments.
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 risk that
Venezuela may not be able to fund the contemplated future payments
pursuant to the Settlement Agreement.
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: http://www.businesswire.com/news/home/20170718006129/en/
Source: Gold Reserve Inc.
Gold Reserve Inc.
A. Douglas Belanger, 509-623-1500