SPOKANE, Wash.--(BUSINESS WIRE)--Jun. 29, 2017--
Gold Reserve Inc. (TSX.V: GRZ) (OTC: GDRZF) ("Gold Reserve" or the
"Company") announced that it has given notice to its noteholders that it
will redeem on July 14, 2017 (the “Redemption Date”) a total of US
$27,500,000 aggregate principal amount of its outstanding 11% Senior
Secured Convertible Notes due 2018 (the “Convertible Notes”) and 11%
Senior Secured Interest Notes due 2018 (together with the Convertible
Notes,” the “Notes”), for an amount of cash equal to 120% of the
outstanding principal amount of the Notes to be redeemed, or US
$33,000,000, plus accrued and unpaid interest to the Redemption Date.
On June 16, 2017, the Company announced the execution of an amendment to
its settlement agreement (as amended to the date thereof, the
“Settlement Agreement”) with the Bolivarian Republic of Venezuela
(“Venezuela”) pursuant to which Venezuela has made an initial payment of
US $40,000,000 (the “Initial Payment”). Pursuant to the terms of the
indenture governing the Notes, receipt of the Initial Payment obligates
Gold Reserve to redeem a portion of the outstanding Notes. As a result,
the Company is using the proceeds from the Initial Payment, net of
applicable taxes, to redeem a portion of the outstanding Notes. Because
such proceeds are insufficient to redeem all of the outstanding Notes, a
pro rata portion of the Notes will be redeemed from each holder. As
additional payments are made by Venezuela pursuant to the Settlement
Agreement, Gold Reserve intends to apply such proceeds to redeem the
remaining outstanding Notes in accordance with the requirements of the
indenture.
Further information regarding the Company can be located at www.goldreserveinc.com,
www.sec.gov,
and www.sedar.com.
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.
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/20170629006214/en/
Source: Gold Reserve Inc.
Gold Reserve Inc.
A. Douglas Belanger, 509-623-1500
Fax:
509-623-1634
President