Gold Reserve Provides November Venezuela Update
November 22 2017 - 4:37PM
Business Wire
Gold Reserve Inc. (TSX.V: GRZ) (OTCQX: GDRZF) (“Gold Reserve” or
the “Company”) reported on activities in Venezuela with respect to
the Siembra Minera S.A. gold/copper/silver project (owned 45% by
the Company and 55% by the Bolivarian Republic of Venezuela).
Gold Reserve, Siembra Minera S.A. and their technical
consultants are working to complete the Preliminary Economic
Assessment (“PEA”) in accordance with National Instrument 43-101.
This study will include an up to date resource estimate, a mine
plan including gold, copper and silver production, estimated
capital and operating costs, and overall project schedule for both
the planned early production 15,000 tonnes per day saprolite mill
and the longer term 140,000 tonnes per day hard rock mill.
The Company is also pleased to report net income of US$34.3
million (US$0.36 per share) for the third quarter ended September
30, 2017, versus a US$5.6 million net loss (US$0.06 per share) for
the same period in 2016. Revenues for the third quarter 2017 were
US$88.5 million versus no revenues in the same period of 2016. For
the nine months ended September 30, 2017 net income was US$81.8
million versus a net loss of US$15.1 million for the same period of
2016. Revenues for the nine months were US$187.5 million versus no
revenues in the same period of 2016. The Company’s unaudited
interim consolidated financial statements and related management’s
discussion and analysis for the three and nine months ended
September 30, 2017 have been filed and are available for review
under the Company’s profiles at www.sedar.com and www.sec.gov.
The Company also announces that it has received the November
installment payment of US$29.5 million pursuant to its Settlement
Agreement with Venezuela. These funds were deposited into a trust
account for the benefit of the Company at Banco de Desarrollo
Económico y Social de Venezuela (“Bandes”), a Venezuelan
state-owned economic and social development bank. As a result of
the sanctions issued in August 2017, the U.S. government restricted
the Venezuelan government’s access to the U.S. financial markets by
filing executive orders barring, among other things, dealings in
new bonds and stocks issued by the Venezuelan government and the
state oil company and prohibiting Americans from doing business
with them. Subsequent to the U.S. actions, Canada imposed its own
sanctions. The sanctions imposed by the U.S. and Canada
subsequently led international intermediary banks, which previously
facilitated the transfer of funds from Bandes to the Company’s
United States bank accounts, to decline to facilitate such
transfers or put significant limitations on their participation.
The Company and Venezuela have been working with various
international banks to accomplish these transfers. Including the
November 2017 payment, Gold Reserve has received an aggregate of US
$187.5 million pursuant to the Settlement Agreement, of which US$99
million has been transferred to its U.S. bank account and US$88.5
million remains in the Bandes trust account.
Also as a result of the U.S. sanctions, the US$350 million in
face value of debt securities that were intended to be pledged as
collateral for a portion of the Settlement Agreement payments were
not on the exempt list, and are therefore no longer marketable. The
Venezuelan government is working to replace this collateral with
something that is both acceptable to Gold Reserve and permitted
under the sanctions.
Doug Belanger stated, “The government of Venezuela has assured
the Company that it remains committed to the Siembra Minera Project
and the terms of the Settlement Agreement with Gold Reserve and we
are hopeful that the Company can work within the restrictions of
the U.S. and Canadian sanctions to resolve the current
situation.”
Further information regarding the Company can be located at
www.goldreserveinc.com, www.sec.gov and www.sedar.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This release contains “forward-looking statements” within the
meaning of applicable U.S. federal securities laws and
“forward-looking information” within the meaning of applicable
Canadian provincial and territorial securities laws and state Gold
Reserve’s and its management’s intentions, hopes, beliefs,
expectations or predictions for the future including without
limitation statements with respect to the development of the
Siembra Minera project, including the preparation of a PEA for the
project, the transfer of funds held in the Company’s trust account
with Bandes and the pledging of collateral by Venezuela pursuant to
the Settlement Agreement. 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 outcomes, financial results, performance, or achievements of
Gold Reserve to be materially different from our estimated
outcomes, future results, performance, or achievements expressed or
implied by those forward-looking statements, including without
limitation the risk that a PEA for the Siembra Minera project will
not be completed within the time frame anticipated, the risk that
the development of the Siembra Minera project may not proceed as
anticipated , the risk that the Company may not be able to
repatriate funds received under the Settlement Agreement and the
risk that Venezuela may not be able to provide collateral security
for the payments to be made under the Settlement Agreement. 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 Securities and Exchange Commission and
applicable Canadian provincial and territorial securities laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171122005639/en/
Gold Reserve Inc.A. Douglas Belanger,
509-623-1500PresidentFax: 509-623-1634
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