Venezuela migth settle Las Brisas contract with Gold Reserve

HOUSTON
Petroleumworld.com, Nov 11, 2009

Canada`s Gold Reserve believes it is still possible that the Venezuelan government will pay off $300 million in investments despite canceling the Canadian miner's Las Brisas concession contract, Gold Reserve de Venezuela President Arturo Rivero told Platts.

"There is still a chance that might happen, you just don't know what the government will do," he said. Gold Reserve recently filed a $5 billion international arbitration suit against Venezuela alleging wrongful treatment and lost revenues in the expected development of the Las Brisas property located in Bolivar state.

In what Gold Reserve claims was a retaliatory action, officials from the Ministry of Basic Industry and Mining physically took over the property on October 26 and expelled 61 employees, according to Rivero.

He noted that the government`s latest move is part of a long process that began in May 2008, when the Chavez government canceled Gold Reserve`s environmental permit and later said it wanted to link up with Rusoro Mining Ltd to jointly develop Brisas and the adjacent Las Cristinas gold property.

Story by George Soules from Platts
Platts 11/10/2009

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