Gold Reserve Notifies Venezuelan Government of Investment Dispute
21 April 2009 - 11:46PM
Business Wire
Gold Reserve Inc. (TSX:GRZ)(NYSE-Amex:GRZ) announced today that
it has notified the Bolivarian Republic of Venezuela of the
existence of a dispute between the Company and the Venezuelan
Government under both: (1) the Agreement between the Government of
Canada and the Government of the Republic of Venezuela for the
Promotion and Protection of Investments (�Canada � Venezuela
Treaty�) and (2) the Agreement between the Government of Barbados
and the Government of the Republic of Venezuela for the Promotion
and Protection of Investments (�Barbados-Venezuela Treaty�).
This dispute has arisen primarily as a result of the Venezuelan
Ministry of Environment's formal notification in May 2008 revoking
the March 2007 permit or Authorization for the Affectation of
Natural Resources for the Construction of Infrastructure and
Services Phase of the Brisas Project. The Company has taken this
action as a result of the Venezuelan Government�s failure to
reinstate the March 2007 authorization and the lack of any
meaningful dialog to resolve the prolonged obstruction of our
rights to the Brisas Project.
It is our intent to settle the dispute amicably. However, if the
dispute is not settled amicably, the Company may file for
international arbitration at anytime under the Barbados-Venezuela
Treaty or after six months from the date of notification under the
Canada-Venezuela Treaty. In the event the Company is compelled to
file for international arbitration, we would make a claim for the
fair market value of our investment at the time of the revocation
which we believe was in excess of US$5 billion. In May 2008, the
time of the revocation, the price of gold and copper was $880 per
ounce and $3.75 per pound, respectively.
Gold Reserve Inc. is a Canadian company, which holds the rights
to the Brisas gold/copper project and the Choco 5 gold exploration
property in Bolivar State, Venezuela.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements that may state
Gold Reserve�s or its management�s intentions, hopes, beliefs,
expectations or predictions for the future. In this release,
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 financial results, performance, or achievements of Gold
Reserve to be materially different from our estimated future
results, performance, or achievements expressed or implied by those
forward-looking statements.
Numerous factors could cause actual results to differ materially
from those in the forward-looking statements, including without
limitation: the outcome of any potential proceedings under the
Venezuelan legal system or before arbitration tribunals as provided
in investment treaties entered into between Venezuela, Canada and
Barbados to determine the compensation due to Gold Reserve in the
event that Gold Reserve and the Venezuelan government do not reach
an agreement regarding construction and operation of the Brisas
Project, or the Brisas Project is transferred to the Venezuelan
government and the parties do not reach agreement on compensation;
concentration of operations and assets in Venezuela; corruption and
uncertain legal enforcement; requests for improper payments;
competition with companies that are not subject to or do not follow
Canadian and U.S. laws and regulations; regulatory, political and
economic risks associated with Venezuelan operations (including
changes in previously established laws, legal regimes, rules or
processes); the ability to obtain, maintain or re-acquire the
necessary permits or additional funding for the development of the
Brisas Project; the result or outcome of the trial regarding Rusoro
Mining Ltd.'s enjoined hostile takeover bid; significant
differences or changes in any key findings or assumptions
previously determined by us or our experts in conjunction with our
2005 bankable feasibility study (as updated or modified from time
to time) due to actual results in our expected construction and
production at the Brisas Project (including capital and operating
cost estimates); the method and manner of our determination of
reserves, risk that actual mineral reserves may vary considerably
from estimates presently made; impact of currency, metal prices and
metal production volatility; fluctuations in energy prices; changes
in proposed development plans (including technology used); our
dependence upon the abilities and continued participation of
certain key employees; the prices, production levels and supply of
and demand for gold and copper produced or held by Gold Reserve;
the potential volatility of Gold Reserve�s Class A common shares;
the price and value of Gold Reserve�s notes, including any
conversion of notes into Gold Reserve�s Class A common shares; the
prospects for exploration and development of projects by Gold
Reserve; and risks normally incident to the operation and
development of mining properties.
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 U.S. Securities and
Exchange Commission (the �SEC�).
In addition to being subject to a number of assumptions,
forward-looking statements in this release involve known and
unknown risks, uncertainties and other factors that may cause
actual results and developments to be materially different from
those expressed or implied by such forward-looking statements,
including the risks identified under �Important Note for U.S.
Investors Concerning Resource Calculations� as well as the risks
identified in the filings by Gold Reserve with the SEC and Canadian
provincial securities regulatory authorities, including Gold
Reserve�s annual information form for the year ended December 31,
2008, dated March 31, 2009, and Gold Reserve�s Annual Report on
Form 20-F for the fiscal year ended December 31, 2008 filed with
the SEC on March 31, 2009.
Gold Reserve (AMEX:GRZ)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Gold Reserve (AMEX:GRZ)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
