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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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POSSIBLE ENDEAVOUR FINANCIAL CONFLICT?...

posted on Dec 17, 2008 12:34AM

POSSIBLE ENDEAVOUR FINANCIAL CONFLICT?

Gold Reserve seeks injunction to stop Rusoro takeover

Gold Reserve is seeking a court injunction, significant monetary damages and other items from would-be acquirer Rusoro Mining.

Author: Dorothy Kosich
Posted: Wednesday , 17 Dec 2008

RENO, NV -

Gold Reserve Tuesday asked an Ontario Superior Court of Justice to grant an injunction restraining Rusoro Mining and its financial advisor Endeavour Financial International from continuing with Rusoro's hostile bid for the Spokane-based gold company.

Rusoro, which launched a $49.8 million all-stock hostile bid for Gold Reserve Monday, responded that the allegations are untrue and will vigorously defend the company against them.

In a news release, Andre Agapov, CEO of Vancouver-based Rusoro, stated: "We are making our premium bid directly to Gold Reserve shareholders and equity unitholders because Gold Reserve management has consistently refused to enter into any constructive dialogue on the matter."

"Our bid is about getting value for Gold Reserve and Rusoro shareholders, not about entrenching management or distracting shareholders from the opportunity to tender into an offer at a very large premium to market value that incumbent Gold Reserve management has achieved for their own shareholders," he added.

Gold Reserve contends that Endeavour has done business with both Gold Reserve and Rusoro this year, and that the merchant banker did not terminate its financial advisory agreement with Gold Reserve until Monday. Rusoro submitted its takeover bid to Gold Reserve's board on Monday. Gold Reserve argues Endeavour "has in depth knowledge of confidential and proprietary information about Gold Reserve" which could aid Rusoro's takeover bid.

Gold Reserve holds the rights to the Brisas gold/copper project and the Choco 5 gold property in Bolivar State, Venezuela. Rusoro hopes to expand its holdings in the lucrative Km88 Mining District in which Brisas is located. Choco 5 is contiguous to Rusoro's Choco 10 operations. Brisas is contiguous to Crystallex's Las Cristinas gold project.