The Toronto Stock Exchange is considering suspending trading of Gold Reserve Inc. stock.
Gold Reserve, a publicly traded Spokane-based mining company, received notification on Nov. 11 that the Toronto exchange would move forward with a delisting review for Gold Reserve. The decision comes just two weeks after Gold Reserve received a reprieve from delisting from the NYSE Amex LLC stock exchange.
Gold Reserve President Doug Belanger couldn't be reached for comment. A press release issued by the company earlier this week, however, says the Toronto exchange has scheduled a meeting for Nov. 21 to consider whether to suspend trading in and delist the company's common shares.
Gold Reserve expects to submit a statement on the matter to the exchange before the meeting. Concurrently, it is checking into other options for exchanges on which its stock can be traded.
As in the NYSE Amex exchange case, the Toronto delisting proposal is a result of the ongoing legal battle Gold Reserve has with the Venezuelan government over its Brisas Project property in that South American country. Gold Reserve's primary business for 16 years has been the Brisas Project, and since the Venezuelan government seized that mine, the company has substantially discontinued the business that it conducted at the time it was listed, the stock exchanges contend.
In the NYSE Amex case, however, the stock exchange has accepted Gold Reserve's plan to regain compliance with the exchange's listing service, according to a shareholder update that the company released on Oct. 31. That plan requires Gold Reserve to obtain a working interest in at least one mineral-exploration property by Dec. 20, 2012.
The deadline for mine-exploration property acquisition is 18 months from the date that the stock exchange first notified Gold Reserve that it wasn't compliant with the exchange's standards.
Gold Reserve is moving forward in its arbitration with Venezuela concerning the Brisas Project. The company is seeking $2.1 billion from Venezuela for losses sustained since the country expropriated the property. An oral hearing on the matter is scheduled for Feb. 6-17, 2012, in Washington, D.C.
In the shareholder update, Belanger says, "The company continues to pursue an amicable settlement of this matter, but no assurance can be given at this time that we will be successful in reaching a settlement."
At Brisas, Gold Reserve has envisioned an open-pit gold and copper mine that could have cost about $731 million to get up and running. Once the mine was operational, the company estimated it would be productive for 18 years.
The company's most recent operating plan for Brisas listed the proven and probable reserves of about 10.2 million troy ounces of gold and 1.4 billion pounds of copper.
For the third quarter of this year, Gold Reserve reported a net loss of $5.1 million, or nine cents a diluted share, compared with a net loss of $6.6 million, or 11 cents a share, in the year-earlier period.
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