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About the company
Gold Reserve Inc. has history in mining dating back to 1956 and was formed for the purpose of acquiring, exploring and developing mining properties and placing them into production. Consistent with that strategy, the Company in 1992 acquired and began developing what is now known as the Brisas gold and copper project, located in the historic Km 88 mining district of the State of Bolivar in southeastern Venezuela (the “Brisas Project”).
The Brisas deposit, which is one of the largest undeveloped gold/copper deposits in the world, contains ore reserves of 10.2 million ounces of gold and 1.4 billion pounds of copper. From 1992 to 2009, the Company invested close to US $300 million in acquisition, land exploration, development, equipment, and engineering costs, which the Company believed developed the Brisas Project into a world class mining project.
As a result of the Company's years of substantive effort and compliance with Venezuelan mining laws and regulations and numerous interim approvals by various government ministries, the Venezuelan Ministry of Environment (“MinAmb”) in March 2007 issued the Authorization for the Affectation of Natural Resources for the Construction of Infrastructure and Services Phase of the Brisas Project (the “Authorization to Affect”).
In May 2008, after enjoying years of support from the relevant Venezuelan authorities in developing its mining properties, investing hundreds of millions of dollars for exploration and development, and successfully developing the Brisas Project to the point of pre-construction, fully in accord with all applicable laws, regulations, licenses and permits, the Bolivarian Republic of Venezuela arbitrarily revoked the Authorization to Affect, eliminating the Company’s ability to exploit the Brisas Project.
On October 21, 2009 the Company filed a Request for Arbitration under the Additional Facility Rules of the International Centre for Settlement of Investment Disputes (“ICSID”) of the World Bank, in Washington D.C., against the Bolivarian Republic of Venezuela seeking compensation for the losses caused to the Company resulting from Venezuela’s violations of the Agreement between the Government of Canada and the Government of the Republic of Venezuela for the Promotion and Protection of Investments (“Canada-Venezuela Treaty”) in regard to the Company and its investments in Venezuela. The information regarding the Company’s Venezuelan properties contained herein should be considered in context of our October 21, 2009 news release "Gold Reserve Files International Arbitration Against Venezuelan Government." The Company's current strategy is to diligently pursue its arbitration case against the Bolivarian Republic of Venezuela while continuing to pursue our goal of progressing from an exploration company to a gold producer through the successful development of proven and probable reserves either by making selective property acquisitions or via corporate transactions. We have an experienced senior management team with considerable operational, financial and administrative experience and we continue to evaluate new opportunities available within the industry outside of Venezuela.
The Company is incorporated under the laws of the Yukon Territory, Canada, maintains its corporate office in Spokane, WA USA, and is listed on the Toronto Stock Exchange and the NYSE Amex (symbol: GRZ). The executive offices of the Company are located at Suite 200, 926 West Sprague Ave., Spokane, Washington 99201. The Company employs 11 people in the United States and approximately 20 in its offices in Venezuela.
The Company also owns 47% interests in Great Basin Energies, Inc. and MGC Ventures, Inc., both Washington corporations. Great Basin Energies, Inc. and MGC Ventures, Inc. hold approximately $1.6 and $1.9 million in cash, respectively. For financial statement purposes, both of these corporations are consolidated with the Company. Neither Great Basin nor MGC Ventures is currently engaged in operations, although both corporations are seeking to identify and acquire income-producing assets.
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