After receiving an initial payment of $40 million from Venezuela on June 15, Spokane-based Gold Reserve Inc. says it has reached another payment arrangement with the financially struggling South American nation.

If Venezuela lives up to its word, it will be paying $997 million to Gold Reserve over the next two years. 

Venezuela now has agreed to make 20 monthly payments of $29.5 million, and three monthly payments of $40.8 million, on or before the 10th day of each month, starting this month. A final payment of $285 million is scheduled to be paid on or before June 10, 2019. 

Separately, Gold Reserve gave notice that on July 14, it would pay off $27.5 million in outstanding notes, using proceeds from the initial payment Venezuela has made to the company.

Last August, the mining company reached a settlement with Venezuela on a $777 million judgment secured after international courts ruled the government there unfairly expropriated Gold Reserve’s primary development property.

Gold Reserve says in a press release that it will refrain from enforcing the arbitral award “as long as Venezuela is current in its obligations.” 

For its part, Venezuela has agreed to withdraw permanently all legal proceedings seeking annulment.

Gold Reserve is incorporated in Canada, but it has its executive offices at 926 W. Sprague in downtown Spokane.

In addition to the payments for the mine itself, Venezuela previously agreed to buy Gold Reserve’s mining data for $240 million for what was previously known as the Brisas Cristinas project. At the request of Venezuelan President Nicolas Maduro, the project was renamed Empresa Mixta Ecosocialista Siembra Minera.

“Siembra Minera is in the process of obtaining the permits required to commence an early works program, and a smaller miner program along with a fast track saprolite production plan ahead of the larger project,” Gold Reserve says.

“Contractors will be mobilizing to the site shortly to support these activities and begin early works,” the company says. “To support these activities, Siembra Minera is pursuing various financing alternatives.”