Gold Reserve starts work to update Brisas FS, EIA
2017-06-30 16:27 ET - News Release
Shares issued 87,512,407
GRZ Close 2017-06-30 C$ 3.55
Mr. Douglas Belanger reports
GOLD RESERVE PROVIDES VENEZUELA UPDATE
Gold Reserve Inc. is providing an update on the activities in Venezuela on the Brisas Cristinas project, which is owned 55 per cent by Venezuela and 45 per cent by a subsidiary of Gold Reserve (through its mixed company, Empresa Mixta Ecosocialista Siembra Minera SA). 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 SA 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 SA 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. Under the terms of the settlement agreement, Venezuela has agreed to pay Gold Reserve a total of approximately $1,037-million (U.S.), comprising approximately $797-million (U.S.) to satisfy the arbitral International Centre for Settlement of Investment Disputes award granted in favour of the company and $240-million (U.S.) for the company's technical mining data related to the Brisas property.
Gold Reserve has received an initial instalment of $40-million (U.S.) under the settlement agreement and is scheduled to receive 20 monthly payments of $29.5-million (U.S.) and three monthly payments of $40.8-million (U.S.) on or before the 10th day of each month starting on July 10, 2017, totalling approximately $712-million (U.S.). The final payment of $285-million (U.S.) is scheduled to be paid on or before June 10, 2019. In addition, Venezuela will place Venezuelan financial instruments with a face value of $350-million (U.S.) 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.
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