Gold Reserve Reports on Venezuelan Government's Failure to Follow Its Own Laws-Part 2
28 Mai 2009 - 1:03AM
Business Wire
Gold Reserve Inc. (TSX:GRZ) (NYSE-Amex:GRZ) commented today on
an Official Gazette issued by the Government of Venezuela dated May
26, 2009 in which the Venezuelan Ministry of Mines (MIBAM) denied
the extension of the Brisas del Cuyuni alluvial gold concession
which contains approximately 3% of the proven and probable gold
reserves of the Brisas Project.
During October 2007, the Company applied for the extension of
the Brisas del Cuyuni alluvial gold concession pursuant to Article
25 of the Venezuelan mining law, which provided MIBAM a six-month
period ending in April 2008 to deny the extension request. Similar
to the El Pauji concession extension application discussed in our
related news release yesterday, MIBAM did not respond to our
request for an extension during the requisite time period.
According to Article 25 of the mining law, the extension is
automatically granted.
Again, as was the case with the El Pauji concession extension
application, MIBAM has attempted to ignore its own regulations and
laws. In September 2008, subsequent to the lapsing of the six month
time period, the Company received from MIBAM a certificate of
compliance (or good standing) of the Company�s obligations set
forth in the mining law and in the title for the Brisas del Cuyuni
alluvial gold concession. MIBAM states in the Official Gazette that
the Company timely filed an application for extension and
acknowledged that MIBAM made its evaluation on the status of the
concession subsequent to the six month time period promulgated in
Article 25 of the mining law. Now, more than one year after the six
month time period elapsed, MIBAM in internal reports asserts
without evidence or prior notice that the Company is not in
compliance with its obligations in regards to the concession.
This action has the effect of terminating the concession and
could allow MIBAM to take physical control of the concession. The
Company currently holds in good standing the hardrock or (veta)
gold and copper concession that occupies the area below the Brisas
alluvial gold concession. The hardrock concession contains proven
and probable gold and copper reserves of approximately 10 million
ounces and 1.4 billion pounds, respectively. The impact of this
implied seizure on our rights to the hardrock (veta) concession is
unclear at this time since the alluvial and hardrock concessions
occupy the same 500 hectre area. In addition, we are extremely
concerned about the future status of our employees located at the
Brisas Project site.
Recently, MIBAM also requested all of the technical information
comprising the Brisas gold copper Project. At this time we do not
see any benefit to the Company in transferring that information to
MIBAM.
There are various legal avenues in Venezuela or through
arbitration proceedings available to the Company to protect our
investment and confidential information. We are prepared to take
all necessary actions to protect our property rights and
investment.
Doug Belanger, President of Gold Reserve, stated, �As a result
of these types of actions by the Venezuelan government, on April
21, 2009 we notified the Venezuelan government that a state of
disagreement existed between the government and the Company under
Bilateral Investment Treaties between, (1) Canada and Venezuela and
(2) Barbados and Venezuela. Further, despite the prolonged
obstruction of our rights to the Brisas Project, it is Gold
Reserve's intention to settle this dispute amicably, but if not
then the Company will accelerate its efforts and file for
international arbitration. The Company expects to make a claim for
in excess of US$ 5 billion representing the fair market value of
our investment at the time of the 2008 revocation of the Permit to
Affect.�
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 the
enjoined hostile takeover bid for Gold Reserve; 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