Gold Reserve's initial payment from Venezuela delayed
2016-12-02 09:04 ET - News Release
Shares issued 87,512,407
GRZ Close 2016-12-02 C$ 5.21
Mr. Douglas Belanger reports
VENEZUELA TO PAY GOLD RESERVE BY DECEMBER 15, 2016 AND MINING UPDATE
Gold Reserve Inc. has agreed to further modify the settlement agreement previously entered into with the Bolivarian Republic of Venezuela (see press release dated Nov. 4, 2016). The first payment of $300-million (U.S.) originally scheduled for Nov. 30, 2016, is now rescheduled to take place on or before Dec. 15, 2016.
The balance for future payments remains the same as previously described, namely that the second payment of $469,681,823 (U.S.) be made on or before Jan. 3, 2017, a third payment of $50-million (U.S.) on or before Jan. 31, 2017, a fourth payment of $100-million (U.S.) on or before Feb. 28, 2017, and a final payment of $90-million (U.S.) on or before June 30, 2017. The aggregate payments to be made by Venezuela have not changed.
Gold Reserve executives, who are in Caracas, have been assured by Roberto Mirabal, Minister of the People's Power for Ecological Mining Development, that the funds are in place and that Venezuela is just completing certain administrative actions to have the funds transferred to Gold Reserve.
Mr. Mirabal stated: "We have worked closely with Gold Reserve executives and we have now finalized the arrangements for the initial payment to Gold Reserve, which shall take place by Dec. 15, 2016. In addition, we have had several board of directors meetings of the mixed company and the project, at long last, is moving forward, which is a historic milestone for Venezuela, for the Mining Arch and the people in the Las Claritas community. In order to promote early gold production, the intention is to initiate small-scale mining at several sites while construction of the main large-scale mineral processing plant is proceeding, in order to maximize local employment opportunities."
James H. Coleman, chairman of Gold Reserve, stated: "Our meetings here in Caracas have gone well; the funding is now in place; and Gold Reserve, based on Minister Mirabal's assurances, will be in receipt of the initial payment by Dec. 15, 2016. This is an important event not only for Gold Reserve, but for Venezuela, as it confirms to the mining and investment communities that you can do business in Venezuela and that it is indeed open for international business."
The mixed company, of which Gold Reserve owns 45 per cent and Venezuela owns 55 per cent, and which holds the Brisas/Cristinas gold deposit, will initiate the development plan of the mining activities needed to commence construction as soon as possible.
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