SPOKANE, Wash.--(BUSINESS WIRE)--Nov. 26, 2018--
Gold Reserve Inc. (TSX.V: GRZ) (OTCQX: GDRZF) (“Gold Reserve” or the
“Company”) today announced that for the nine months ended September 30,
2018 the Company had net earnings after tax of US$67.8 million or
US$0.68 per share compared to US$81.8 million or US$0.89 per share in
the same period of 2017. For the three months ended September 30, 2018
the Company had net earnings after tax of US$3.7 million or US$0.04 per
share compared to US$34.3 million or US$0.36 per share in the same
period of 2017.
The Company has, on a cumulative basis, received US$187.5 million in
cash and Venezuelan sovereign bonds with a market value of US$88.5
million for a total of US$276 million, paid pursuant to the Settlement
Agreement with Venezuela. After redeeming its convertible debt in 2017
and the payment of corporate expenses, the Company presently holds cash
totaling approximately US$82 million (including US$22.3 million held in
the Trust account at Bandes Bank) and holds Venezuelan sovereign bonds
after minor sales, with an approximate fair market value of US$77
million (face value US$297 million).Total net working capital of as of
September 30, 2016 was approximately US$183 million or US$1.84 per
share. We expect to distribute to our shareholders, net of certain
required payments and subject to applicable regulatory requirements and
sufficient reserve for operating expenses and other obligations, a
substantial majority of any remaining amounts in the most tax efficient
manner possible.
The Company completed a positive NI-43-101 compliant Preliminary
Economic Assessment (“PEA”) on the Siembra Minera project in 2018 which
is available on SEDAR, completed preliminary design and cost estimates
and related tailings dam facilities for the Small Plant, initiated
activities associated with the preparation of a Venezuela Environment
Impact Statement ("VEIS") and International Environmental and Social
Impact Assessment ("IESIA"), collected a surface saprolite material
sample for transport to the United States for metallurgical testing and
obtained the permit to effect the environment for the Siembra Minera
Project (“Permit to Effect”) from the Venezuelan Ministry of the
Environment.
In addition, the Company continues a number of social programs to
improve the health care in the Siembra Minera Project area including
addressing the malaria problem with medicine and preventive measures and
undertaking efforts to rehabilitate and/or upgrade various schools,
sports courts, parks and health care facilities, located in the Project
vicinity as well as generating engineering assessments for potential
future upgrades to the local communities' water supply and sewage system
infrastructure.
Doug Belanger President stated, “The Company has continued to collect
the amounts owed under the Settlement Agreement despite the difficulties
the country faces and will work with them to collect the amounts
remaining under the Settlement Agreement of US$765 million.”
The Company also announced a restatement of the second quarter financial
statements on November 15, 2018 and those statements and the third
quarter statements are now available along with further information
regarding the Company 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
future payments under the Settlement Agreement, the disposition of the
bonds received by the Company and the development of the Siembra Minera
Project, including social programs to be undertaken in the project area.
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, the
bonds described above may not be able to be sold in a timely manner at
their current market value or at all, 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 and 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/20181126005684/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
