An international court last week moved up a hearing date between Spokane-based Gold Reserve Inc. and the Venezuelan government as the mining company continues in its protracted battle to secure payment of a $765 million award from that South American country.
The company also reported other legal advances in its attempts to collect the award.
On Jan. 21, the Paris Court of Appeal rescheduled an “arbitral award” annulment date to March 10 from Oct. 13 of this year. Meanwhile, the U.S. District Court in Washington, D.C., issued an order the day before the Paris Court’s action, ruling Gold Reserve could register the judgment in other U.S. District Courts to pursue the award.
And in London, from Jan. 18-20, Gold Reserve argued for courts in the United Kingdom to recognize Gold Reserve’s award against Venezuela. The two sides are now awaiting a decision from the British courts.
Earning wins in court in the U.S. and abroad potentially strengthens the company’s case in its efforts to secure the settlement award.
“We are very pleased the Paris Court of Appeal hearing will now be held March 10, 2016, as well as with the advancement of enforcement and collection efforts in both the United States and United Kingdom,” Gold Reserve President Doug Belanger says in a press release. “The company is vigorously pursuing the legal proceedings related to the collection of the arbitral award.”
In 2008, Gold Reserve sued the Venezuelan government for $2.3 billion after the country seized the company’s primary mining operation, called the Brisas Project. The gold and copper project was Gold Reserve’s main business for more than 16 years.
Gold Reserve claims it invested $300 million into Brisas from the early 1990s to the time the project was expropriated by the Venezuelan government. The company was in the process of clearing the Brisas site when the government revoked its construction permit.
Last July, Gold Reserve Board Chairman James H. Coleman and CEO Rockne J. Timm met face to face with four members of Venezuela’s government and others to discuss settling the award.
Negotiations have continued since that time.
In an unrelated matter, Gold Reserve earlier this month announced the purchase for $350,000 of 36 different mining claims in an area roughly 75 miles southeast of Fairbanks, Alaska. Gold Reserve made the cash purchase from Raven Gold Alaska Inc., in an area called the Goodpaster Mining District. The claims are all in early-stage development.