Gold Reserve Inc. (OTCMKTS:GDRZF) shares jumped 35.29% on Tuesday to $3.45 after the company announced its extension of Memorandum of Understanding with Venezuela.
Gold Reserve Inc. (OTCMKTS:GDRZF) shares are trading within a 52-week range of $2.19 to $5.90. The company has a market cap of $233.76 million with 78.72 shares outstanding. In a press release over the weekend, the company announced that by a mutual agreement with the Bolivarian Republic of Venezuela, their Memorandum of Understanding will be extended from May 27, 2016 to June 21, 2016.
This Memorandum of Understanding contemplates settlement of the arbitral award granted in favor of the Company by the International Centre for Settlement of Investment Disputes in respect of the Brisas Project and the payment for the transfer of the related technical mining data previously compiled by Gold Reserve Inc. This settlement includes payment and resolution.
Aside from that, a joint venture will be established for the development of the Brisas and the adjacent Cristinas gold-copper projects by the Bolivarian Republic of Venezuela and Gold Reserve Inc. The company is working hard to senior officials of the Venezuela government to close the transactions stated in the Memorandum of Understanding by June 21.
Attorney General of Venezuela, Reinaldo Muñoz, confirmed that they are working with the executives of the company to finalize the transactions and move the project forward together. Meanwhile, Gold Reserve Inc. President Doug Belanger mentioned that they have made significant progress towards a successful conclusion. Belanger also pointed out that he sees no solid reason for the sharp share price decline recently.
Gold Reserve Inc. is an exploration-stage company engaged in he business of acquiring, exploring and developing mining projects. In particular, the company operates in the exploration and development of mineral properties segment and has an interest in certain mining claims known as the LMS Gold Project together with certain personal property.
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