Gold Reserve, Inc.
Gold Reserve Inc. (the “Company”) has a history in mining dating back to 1956 and was originally formed for the purpose of acquiring, exploring, and developing mining properties and placing them into production. The Company is incorporated under the laws of the Province of Alberta, Canada and is listed on the TSX Venture Exchange and the OTCQX Markets Exchange.
In 1992, the Company acquired and began developing what is referred to 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”). From 1992 to 2009, the Company invested close to US $300 million in acquisition, land exploration, development, equipment, and engineering costs.
In October 2009 we initiated the Brisas Arbitration to obtain compensation for the losses caused by the actions of Venezuela in 2008 that terminated our Brisas Project. On September 22, 2014, we were granted an Arbitral Award (the “Award”) totaling $740.3 million.
In July 2016, we signed the Settlement Agreement, subsequently amended, whereby Venezuela agreed to pay us a total of approximately $1.032 billion ($792 million to satisfy the Award (including interest) and $240 million for the purchase of our mining data related to the Brisas Project (the “Mining Data”)) in a series of payments ending on or before June 15, 2019.
The Company has received transfers to its bank account, pursuant to the Settlement Agreement, of approximately $254 million. The remaining unpaid amount due from Venezuela pursuant to the Settlement Agreement, which is now delinquent, totals approximately $859 million (including interest of approximately $80 million) as of June 2019.
In October 2016 Empresa Mixta Ecosocialista Siembra Minera, S.A. (“Siembra Minera”) was established. The primary purpose of this entity is to develop the Siembra Minera Project (primarily comprised of the Brisas and Las Cristinas concessions) and is beneficially owned 55% by Venezuela and 45% by Gold Reserve. A number of authorizations, which still have not been provided by the current administration, are critical to the future operation and economics of the Siembra Minera Project and, as a result, management continues its efforts to secure them on behalf of Siembra Minera.
In August 2019, the U.S. government issued an Executive Order (“EO”) that blocks all property of the Venezuelan government and prohibits U.S. persons from engaging in virtually all dealings with the Venezuelan government. The breadth and scope of the August 2019 EO adversely impacts our ability to collect the remaining balance of the Award plus interest from Venezuela and, until Sanctions are lifted, significantly impedes our ability to develop the Siembra Minera Project.