Gold Reserve Inc. (TSX.V: GRZ) (OTCQX: GDRZF) (“Gold
Reserve” or the “Company”) is pleased to announce the
submission of a credit bid (the “Bid“) for the common shares
of PDV Holdings, Inc. (“PDVH”), the indirect parent company
of CITGO Petroleum Corp. (“Citgo”).
The Bid has been made pursuant to the sales and bidding
procedures (the “Bidding Procedures”) managed by the Special
Master (the “Special Master”) appointed by the U.S. District
Court for the District of Delaware (the “Delaware Court") in
connection with sale of PDVH common shares (the “Sale
Process”). In accordance with the Bidding Procedures, the terms
of the Bid are confidential.
Further steps in respect of the Bid will occur pursuant to the
Bidding Procedures, as may be modified by the Special Master and/or
the Delaware Court.
In conjunction with the Bid, Gold Reserve has entered into an
indication of interest with FJ Management Inc. (“FJM”)
whereby FJM may, in the event the Bid is successful, participate in
ownership, collaboration and operational oversight of the acquired
business.
Crystal Maggelet, Chief Executive Officer of FJM has provided
the following statement:
“At FJ Management Inc., we are thrilled to partner with Gold
Reserve Inc. on this exciting opportunity. Together, we bring a
wealth of experience and a shared commitment to excellence. This
partnership reflects FJ Management’s continued commitment of
building value to last for our shareholders, employees, customers,
and the communities in which we operate.”
Paul Rivett, Executive Vice-Chairman of Gold Reserve, said the
following:
“We are very thankful to all of our partners and stakeholders,
in particular our shareholders, who rallied behind Gold Reserve to
make our credit bid a reality. We know that much work remains to
put ourselves in a position to be successful but we are thankful to
all involved in the process and look forward to reporting on our
progress in due course.”
The Company has most recently discussed the potential of making
a bid in its June 5, 2024 and May 29, 2024 press releases.
Information on Citgo and PDVH
More information pertaining to Citgo, its business, financial
statements and its relationship to PDVH can be found on the Citgo
website at https://www.citgo.com.
On Behalf of the Board of Directors
Paul Rivett Executive Vice-Chairman
Cautionary Statement Regarding Forward-Looking
statements
This release contains “forward-looking statements” within the
meaning of applicable U.S. federal securities laws and
“forward-looking information” within the meaning of applicable
Canadian provincial and territorial securities laws and state Gold
Reserve’s and its management’s intentions, hopes, beliefs,
expectations or predictions for the future. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management at this
time, are inherently subject to significant business, economic and
competitive uncertainties and contingencies. They are frequently
characterized by words such as "anticipates", "plan", "continue",
"expect", "project", "intend", "believe", "anticipate", "estimate",
"may", "will", "potential", "proposed", "positioned" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements contained in this
press release include, but are not limited to, statements relating
to the Bid.
We caution that such forward-looking statements involve known
and unknown risks, uncertainties and other risks that may cause the
actual events, outcomes or results of Gold Reserve to be materially
different from our estimated outcomes, results, performance, or
achievements expressed or implied by those forward-looking
statements, including but not limited to: the discretion of the
Special Master to consider the Bid, to enter into any discussions
or negotiation with respect thereto and that the Special Master may
reject the Bid; the failure of the Company to negotiate the Bid,
including as a result of failing to obtain sufficient equity and/or
debt financing; that the Bid submitted by the Company will not be
selected as a “Successful Bid” under the Bidding Procedures, and if
selected may not close, including as a result of U.S. Department of
Treasury Office of Foreign Assets Control (“OFAC”), or any
other applicable regulatory body, not granting an authorization in
connection with any potential sale of PDVH shares and/or whether
OFAC changes its decision or guidance regarding the Sale Process;
failure of the Company or any other party to obtain any required
approvals for, or satisfy other conditions to effect, any
transaction resulting from the Bid; that the Company may forfeit
any cash amount deposit made due to failing to complete the Bid or
otherwise; that the making of the Bid or any transaction resulting
therefrom may involve unexpected costs, liabilities or delays;
that, prior to or as a result of the completion of any transaction
contemplated by the Bid, the business of the Company may experience
significant disruptions due to transaction related uncertainty,
industry conditions or other factors; the ability to enforce the
writ of attachment granted to the Company; the timing set for
various reports and/or other matters with respect to the Sale
Process may not be met; the ability of the Company to otherwise
participate in the Sale Process (and related costs associated
therewith; the amount, if any, of proceeds associated with the Sale
Process; the competing claims of certain creditors, the “Other
Creditors” (as detailed in the applicable court documents filed
with the Delaware Court) of Venezuela and the Company, including
any interest on such creditors’ judgements and any priority
afforded thereto; uncertainties with respect to possible
settlements between Venezuela, PDVSA, and/or any of their agencies
or instrumentalities, and other creditors and the impact of any
such settlements on the amount of funds that may be available under
the Sale Process; and the proceeds from the Sale Process may not be
sufficient to satisfy the amounts outstanding under the Company’s
September 2014 arbitral award and/or corresponding November 15,
2015 U.S. judgement in full and the ramifications of bankruptcy
with respect to the Sale Process and/or the Company’s claims,
including as a result of the priority of other claims. This list is
not exhaustive of the factors that may affect any of the Company’s
forward-looking statements. For a more detailed discussion of the
risk factors affecting the Company’s business, see the Company’s
Annual Information Form on Form 40-F and Management’s Discussion
& Analysis for the year ended December 31, 2023, the Company’s
Management’s Discussion & Analysis for the period ended March
31, 2024 and other reports that have been filed on SEDAR+ and are
available under the Company’s profile at www.sedarplus.ca and which
have been filed on EDGAR and are available under the Company’s
profile at www.sec.gov/edgar.
Investors are cautioned not to put undue reliance on
forward-looking statements. All subsequent written and oral
forward-looking statements attributable to Gold Reserve or persons
acting on its behalf are expressly qualified in their entirety by
this notice. Gold Reserve disclaims any intent or obligation to
update publicly or otherwise revise any forward-looking statements
or the foregoing list of assumptions or factors, whether as a
result of new information, future events or otherwise, subject to
its disclosure obligations under applicable rules promulgated by
the Securities and Exchange Commission and applicable Canadian
provincial and territorial securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE
EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF
THIS RELEASE.
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Gold Reserve Inc. Contact
Jean Charles Potvin 999 W. Riverside Ave., Suite 401 Spokane, WA
99201 USA Tel: (509) 623-1500 Fax: (509) 623-1634
Gold Reserve (TSXV:GRZ)
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