I noticed this morning ,when this site was down ,that the Rusoro adviser for the takeover was the same used be GRZ .

Nobody picked it up ,so i let it go ,but now it seems that the fact is raising some concern according to the following article.

Gold Reserve Chief Says Rusoro Adviser ‘Taints’ Bid (Update2)

By Stewart Bailey and Rob Delaney

Dec. 15 (Bloomberg) -- Gold Reserve Inc., owner of the Brisas mine in Venezuela, said a C$61.6 ($49.8 million) hostile bid by Rusoro Mining Ltd. may be “tainted” because an adviser on the offer has worked for both companies.

Endeavour Financial Corp., which is advising Rusoro, has helped arrange financing for his company and has done work for it as late as this year, said Doug Belanger, chief executive officer of Gold Reserve. In the course of that work, Endeavour had access to confidential information, he said.

“There’s a possibility that this bid really can’t proceed because it’s tainted,” Belanger said today in an interview from Spokane, Washington, where Gold Reserve is based. The company’s biggest asset is the Brisas copper and gold project in Venezuela.

The hostile bid follows a friendly Rusoro overture in September that Gold Reserve rejected. Andre Agapov, the Rusoro CEO who has overseen purchases of Gold Fields Ltd.’s Choco10 deposit and Hecla’s Isidora mine in Venezuela, has set up a joint venture with that country. Agapov has said Rusoro’s Russian connections help it work with the government of President Hugo Chavez.

Rusoro offered three of its shares for each Gold Reserve Class A share or equity unit, valuing the company at C$1.08 a share, Vancouver-based Rusoro said today in a separate statement. That’s more than double Gold Reserve’s closing price of 45 cents on Dec. 12.

Accountants and advisers hired by Gold Reserve are poring over Rusoro’s financial statements to determine the company’s health and the value of the offer, Belanger said. He has advised Gold Reserve investors to examine a Sept. 30 Rusoro regulatory filing in which management discusses its operations and results.

Endeavour Response

Sally Eyre, director of marketing and business development at Vancouver-based Endeavour, wasn’t able to comment immediately on Gold Reserve’s concerns when reached today.

Gold Reserve jumped 28 Canadian cents, or 62 percent, to 73 cents at 3:59 p.m. on the Toronto Stock Exchange. The shares still have plunged 86 percent this year, giving the company a market value of C$41.5 million.

Rusoro fell 10.5 Canadian cents, or 29 percent, to 25.5 cents in Toronto. The shares have dropped 84 percent this year, valuing the company at C$100.9 million.

Venezuela revoked Gold Reserve’s construction permit earlier this year, stalling its plans to invest $552 million to develop the Brisas project. The site was estimated to yield 486,500 ounces of gold and 63 million pounds of copper a year over a 16-year life, according to a 2005 feasibility study posted on the company’s Web site.

Partnering With Venezuela

Rusoro is Venezuela’s preferred partner to develop a gold deposit at Las Cristinas, Agapov said last month. Las Cristinas lies near Brisas and also has been delayed for years because of permitting issues.

Last month, Venezuela’s mining regulator said it planned to seize Las Cristinas, owned by Crystallex International Corp. of Toronto. Agapov said Rusoro has been more successful producing gold in Venezuela than its rivals.

“Gold Reserve started in Venezuela in 1993, we started as a private company in 2003 and we are already producing gold -- we have our permit, we are the only ones,” Agapov said today in a telephone interview. “We enjoy a normal relationship with the authorities.”

Venezuela’s government will draw from the country’s development fund to finance its half of the capital costs at Brisas, Agapov said. That will leave Rusoro to raise the balance, he said.

Earlier Successes

Under Agapov, Rusoro managed to get the necessary permits awarded for the Choco10 mine soon after buying it from Gold Fields last year. Gold Fields had failed to obtain the permits. In June, Hecla sold its Isidora mine and Camorra processing plant after worker protests had halted production for a month.

Rusoro expects to produce 100,000 ounces of gold this year in Venezuela, Agapov said. That may grow to as much as 600,000 ounces annually by 2011 and to more than 1 million ounces if the Gold Reserve bid succeeds, he said.

The ministry of basic industry and mines has no information about the Gold Reserve bid, Minister Rodolfo Sanz said today in an interview in Caracas. An acquisition of the company would require state authorization, he said.

Directors of Gold Reserve will consider the Rusoro bid once they have received full details, Belanger said. Following that review, the directors will recommend what they believe is in the best interests of shareholders, the company said in a statement.

To contact the reporter on this story: Steven Frank in Toronto at sfrank9@bloomberg.net.