Gold Reserve to Form Joint Venture with Venezuela

Gold Reserve Inc. (TSXV:GRZ,OTCQB:GDRZF) announced that it’s entered into a memorandum of understanding (MOU) with the Bolivarian Republic of Venezuela. The MOU “contemplates settlement, including payment and resolution,” of an arbitral award granted to the company by the International Centre for Settlement of Investment Disputes.
The Financial Post has called the MOU “a potential turning point for Canadian miners with arbitration wins.”
As quoted in the press release:

[The award is regarding] the Brisas Project, the transfer of the related technical mining data previously compiled by the Company, as well as the development of the Brisas and the adjacent Cristinas gold-copper project, which will be combined into one project (the “Brisas-Cristinas Project”) by the Company and Venezuela.
Under the terms proposed by the MOU, Venezuela would proceed with payment of the Award including accrued interest and enter transactional (settlement) and mixed company (“joint venture”) agreements, which are expected to be executed in approximately 60 days, subject to various conditions, including without limitation receipt of all necessary regulatory and corporate approvals and the successful negotiation and execution of definitive agreements. In addition, Venezuela would pay an amount to be agreed upon for the Company’s contribution of its technical mining data to the Brisas-Cristinas Project.
Following completion of the definitive agreements, it is anticipated that Venezuela, with the Company’s assistance, would work to complete the financing to fund the contemplated payments to the Company pursuant to the Award and for its mining data and $2 billion towards the anticipated capital costs of the Brisas-Cristinas Project. Upon payment, the Company will cease all legal activities related to the collection of the Award.

Doug Belanger, president of Gold Reserve, commented:

This is a tremendous opportunity for the Company and Venezuela to jointly develop the Brisas-Cristinas Project while providing economic growth in the region and the creation of a new industry complementary to the Republic’s existing oil industry. After settlement of all of the Company’s obligations, substantially all of the net proceeds of the payment related to the Award and technical mining data is expected to be distributed to our shareholders.

Click here to read the full Gold Reserve Inc. (TSXV:GRZ,OTCQB:GDRZF) press release.