In spite of a failed hostile takeover bid and months of delay, Spokane, Washington-based Gold Reserve is not giving up its battle to secure approval for its Las Brisas gold/copper project in the Bolivar State of Venezuela.
The junior company has formally notified the Venezuelan Government of a dispute between the two parties, seeking protection through the Canada-Venezuelan Treaty for the Promotion and Protection of Investments and the Barbados-Venezuela Treaty.
In a statement, Gold Reserve said the company has taken this action as a result of the Venezuelan Government's failure to reinstate the March 2007 authorization and the lack of any meaningful dialog to resolve the prolonged obstruction of our rights to the Brisas Project.
Brisas is located in the Km88 mining district, along with Crystallex's Las Cristinas gold project. The Venezuelan Ministry of the Environment put a halt to both projects. Instead, a subsidiary of the Venezuelan Government has chosen to enter into gold mining partnerships with Canadian junior Rusoro Mining.
In its statement, Gold Reserve said if the dispute isn't settled amicably, the company may file for international arbitration under both treaties. In the event the company is compelled to file for international arbitration, we would make a claim for the fair market value of our investment at the time of the revocation which we believe was in excess of US$5 billion. In May 2008, the time of the revocation, the price of gold and copper was $880 per ounce and $3.75 per pound, respectively.
Metatags: Las Brisas permitting, Gold Reserve/Venezuela Government Las Brisas dispute, Km88 mining district, Venezuelan gold mining