Gold Reserve requires the Government $ 1.9 billion for damage
Wednesday, September 29, 2010
Maria Ramirez Cabello



Gold Reserve has invested $ 300 million between 1992 and 2009 at the Brisas Project Book Gold mining company asked the Venezuelan government compensation of 1.9 billion dollars in losses and damages, concerning the revocation of the authorization to operate Brisas project and the Choco promising 5, located at kilometer 88 south of Bolivar State.

Through a statement, the company alleged violations of three provisions of the Bilateral Investment Treaty Canada-Venezuela "that resulted in the effective expropriation of the Brisas project and the Choco 5 promising."

"Gold Reserve seeks compensation for all losses caused by violations of Venezuela, including the total value of its investment in the project Brisas and Choco 5", he says, adding that "until 24 September, assesses its damages in an amount of 1,928 million dollars. "

The president of the mining, Doug Belanger said the Brisas Project and the Choco 5 exploration promise constituted a significant asset of the shareholders of the company.

"We work extremely hard to maximize the value of these projects for shareholders, stakeholders and local beneficiaries in Venezuela. Venezuela has obviously decided to take another path in the Brisas Project," said Belanger.

In that sense, they say, the company is prepared to push a decision on this case.

"We remain ready, however, to evaluate and possibly sign a mutual agreement that we compensate our losses (...) Any deal would be accepted only if it is beneficial to the shareholders of the company."

In April 2008, after the company had successfully developed the Brisas Project to the point of construction, the Bolivarian Republic of Venezuela arbitrarily revoked the authorization to proceed with the construction of the Brisas Project, eliminating the company's ability to exploit .

On October 21, 2009, the Company filed a request for arbitration before the International Centre for Settlement of Investment Disputes (ICSID) of the World Bank in Washington DC.