Jul 3 2017
Gold Reserve Inc. ("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.
Source: http://ir.goldreserveinc.com/phoenix.zhtml?c=101938&p=irol-newsArticle&ID=2284273