SPOKANE, Wash.--(BUSINESS WIRE)--Nov. 22, 2017--
Gold Reserve Inc. (TSX.V: GRZ) (OTCQX: GDRZF) (“Gold Reserve” or the
“Company”) reported on activities in Venezuela with respect to the
Siembra Minera S.A. gold/copper/silver project (owned 45% by the Company
and 55% by the Bolivarian Republic of Venezuela).
Gold Reserve, Siembra Minera S.A. and their technical consultants are
working to complete the Preliminary Economic Assessment (“PEA”) in
accordance with National Instrument 43-101. This study will include an
up to date resource estimate, a mine plan including gold, copper and
silver production, estimated capital and operating costs, and overall
project schedule for both the planned early production 15,000 tonnes per
day saprolite mill and the longer term 140,000 tonnes per day hard rock
mill.
The Company is also pleased to report net income of US$34.3 million
(US$0.36 per share) for the third quarter ended September 30, 2017,
versus a US$5.6 million net loss (US$0.06 per share) for the same period
in 2016. Revenues for the third quarter 2017 were US$88.5 million versus
no revenues in the same period of 2016. For the nine months ended
September 30, 2017 net income was US$81.8 million versus a net loss of
US$15.1 million for the same period of 2016. Revenues for the nine
months were US$187.5 million versus no revenues in the same period of
2016. The Company’s unaudited interim consolidated financial statements
and related management’s discussion and analysis for the three and nine
months ended September 30, 2017 have been filed and are available for
review under the Company’s profiles at www.sedar.com
and www.sec.gov.
The Company also announces that it has received the November installment
payment of US$29.5 million pursuant to its Settlement Agreement with
Venezuela. These funds were deposited into a trust account for the
benefit of the Company at Banco de Desarrollo Económico y Social de
Venezuela (“Bandes”), a Venezuelan state-owned economic and social
development bank. As a result of the sanctions issued in August 2017,
the U.S. government restricted the Venezuelan government’s access to the
U.S. financial markets by filing executive orders barring, among other
things, dealings in new bonds and stocks issued by the Venezuelan
government and the state oil company and prohibiting Americans from
doing business with them. Subsequent to the U.S. actions, Canada imposed
its own sanctions. The sanctions imposed by the U.S. and Canada
subsequently led international intermediary banks, which previously
facilitated the transfer of funds from Bandes to the Company’s United
States bank accounts, to decline to facilitate such transfers or put
significant limitations on their participation. The Company and
Venezuela have been working with various international banks to
accomplish these transfers. Including the November 2017 payment, Gold
Reserve has received an aggregate of US $187.5 million pursuant to the
Settlement Agreement, of which US$99 million has been transferred to its
U.S. bank account and US$88.5 million remains in the Bandes trust
account.
Also as a result of the U.S. sanctions, the US$350 million in face value
of debt securities that were intended to be pledged as collateral for a
portion of the Settlement Agreement payments were not on the exempt
list, and are therefore no longer marketable. The Venezuelan government
is working to replace this collateral with something that is both
acceptable to Gold Reserve and permitted under the sanctions.
Doug Belanger stated, “The government of Venezuela has assured the
Company that it remains committed to the Siembra Minera Project and the
terms of the Settlement Agreement with Gold Reserve and we are hopeful
that the Company can work within the restrictions of the U.S. and
Canadian sanctions to resolve the current situation.”
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
development of the Siembra Minera project, including the preparation of
a PEA for the project, the transfer of funds held in the Company’s trust
account with Bandes and the pledging of collateral by Venezuela pursuant
to the Settlement Agreement. 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 a
PEA for the Siembra Minera project will not be completed within the time
frame anticipated, the risk that the development of the Siembra Minera
project may not proceed as anticipated , the risk that the Company may
not be able to repatriate funds received under the Settlement Agreement
and the risk that Venezuela may not be able to provide collateral
security for the payments to be made under the Settlement Agreement.
This list is not exhaustive of the factors that may affect any of Gold
Reserve’s 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/20171122005639/en/
Source: Gold Reserve Inc.
Gold Reserve Inc.
A. Douglas Belanger, 509-623-1500
President
Fax:
509-623-1634