SPOKANE, Wash.--(BUSINESS WIRE)--Jun. 30, 2017--
Gold Reserve Inc. (TSX.V: GRZ) (OTC: GDRZF) (“Gold Reserve” or the
“Company”) is pleased to provide an update on the activities in
Venezuela on the Brisas Cristinas Project which is owned 55% by
Venezuela and 45% by a subsidiary of Gold Reserve (through their mixed
company Empresa Mixta Ecosocialista Siembra Minera, S.A. (“Siembra
Minera S.A.”). Gold Reserve and Venezuela have initiated activities to
update the Feasibility Study and the Environmental Impact Statement
previously prepared to include the expanded project with updated capital
and operating costs. A Preliminary Economic Assessment (“PEA”) is also
being prepared to Canadian National Instrument 43-101 disclosure
standards and is expected to be completed in a few months. In addition,
Siembra Minera S.A. is in the process of obtaining the permits required
to commence an early works program and a small miner program along with
a fast track saprolite production plan ahead of the larger project.
Contractors will be mobilizing to the site shortly to support these
activities and begin early works. To support these activities Siembra
Minera S.A. is pursuing various financing alternatives.
In addition, the Company is providing an update to the previously
announced third amendment of the Settlement Agreement with Venezuela
(the “Settlement Agreement”). Under the terms of the Settlement
Agreement, Venezuela has agreed to pay Gold Reserve a total of
approximately US $1,037 million, comprised of approximately US $797
million to satisfy the arbitral ICSID Award granted in favor of the
Company and US $240 million for the Company’s technical mining data
related to the Brisas property.
Gold Reserve has received an initial installment of US $40 million under
the Settlement Agreement and is scheduled to receive 20 monthly payments
of US $29.5 million and three monthly payments of US $40.8 million on or
before the 10th day of each month starting on July 10, 2017, totalling
approximately US $712 million. The final payment of US $285 million is
scheduled to be paid on or before June 10, 2019. In addition, Venezuela
will place Venezuelan financial instruments with a face value of US $350
million in trust as collateral for the future payments.
Gold Reserve will refrain from enforcing the Award as long as Venezuela
is current in its obligations to the Company. In addition, Venezuela has
agreed to permanently withdraw all legal proceedings seeking annulment.
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, as amended, the
contemplated pledge of Venezuela debt securities as security for such
payments and the development of the Brisas Cristinas project, including
the preparation of a revised feasibility study, a revisedenvironmental
impact statement and a PEA for the project and the pursuit of financing
arrangements by Siembra Minera S.A. 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 to
the Company pursuant to the Settlement Agreement, the uncertainty of the
value of the Venezuela debt securities to be pledged to the Company in
the event Venezuela defaults on its payment obligations, the risk that a
revised feasibility study, a revisedenvironmental impact
statement and a PEA for the Brisas Cristinas project will not be
completed within the time frames anticipated, the risk that Siembra
Minera S.A. may not be able to arrange financing for the anticipated
capital costs of the Brisas Cristinas project and the risk that the
development of the Brisas Cristinas project may not proceed as
anticipated.
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/20170630005730/en/
Source: Gold Reserve Inc.
Gold Reserve Inc.
A. Douglas Belanger, 509-623-1500
President
Fax:
509-623-1634