Gold Reserve Rejects Rusoro Offer, Eyes Own InvestmentLast update:
12/31/2008 11:49:29 AMBy Devon Maylie Of DOW JONES NEWSWIRES LONDON
(Dow Jones)--Gold Reserve Inc. (GRZ), a mining company with gold
reserves in Venezuela, said Wednesday it has rejected Rusoro Mining
Ltd.'s (RML.V) second unsolicited offer because it undervalues the
company, and is instead eyeing its own investment opportunities. "The
offer doesn't reflect our financial positions," Gold Reserve
president Doug Belanger told Dow Jones Newswires. "We have a good
deal of cash and are looking to make investments." "We are always
looking at investments because of the conditions," Belanger said,
adding there are opportunities in Canada, Mexico and the U.S. that
appear attractive. He also said the company is expecting
clarification from the Venezuelan government soon regarding talk
about its reforming the mining laws there and said the company is
open to discussions with the government on forming a joint venture.
Belanger said lower commodity prices could enable better dialogue
between governments and mining companies and help parties come to "a
reasonable resolution." The board of directors rejected Rusoro's
offer to acquire all of the outstanding shares and equity units of
Gold Reserve in consideration for three shares of Rusoro for each
Gold Reserve share tendered under the Offer. -By Devon Maylie, Dow
Jones Newswires; +44 (0)20 7842 9483; devon.maylie@... (END)
Dow Jones NewswiresDecember 31, 2008 11:49 ET (16:49 GMT)