Trading symbol (TSX-V): RML
VANCOUVER, Aug. 23, 2016 /CNW/ - Rusoro Mining Ltd. (the
"Company" or "Rusoro") welcomes the award (the "Award")
issued on August 22, 2016 by the
Arbitration Tribunal ("Tribunal") operating under the Additional
Facility Rules of the World Bank's International Centre for the
Settlement of Investment Disputes ("ICSID") in the arbitration
brought by Rusoro against the Bolivarian Republic of Venezuela ("Venezuela"). The Tribunal awarded
the Company damages of US$967.77
million plus pre and post-award interest which currently
equates to in excess of US$1.2
billion.
Rusoro filed its request for arbitration before ICSID on
July 17, 2012 under the
Canada-Venezuela Bilateral Investment Treaty ("BIT"). In its Award,
the Tribunal upheld Rusoro's claims that Venezuela breached its obligations under the
BIT by unlawfully expropriating Rusoro's investments without paying
compensation and by imposing certain restrictions on the export of
gold. As a result of these breaches, the Tribunal ordered
Venezuela to pay damages of
US$967.77 million as of the date of
the expropriation (16 September
2011), together with interest accrued between that date and
the date of actual payment, calculated at a rate p.a. equal to US$
Libor for one year deposits, plus a margin of 4%, to be compounded
annually. The amounts awarded must be paid net of any taxes imposed
by Venezuela. The Tribunal
also ordered Venezuela to
contribute US$3.3 million towards
Rusoro's costs in the arbitration.
The Award is due and payable immediately and Rusoro expects
that Venezuela will comply with
its international obligations and make prompt payment of the award.
The Award is immediately enforceable in any of the over 150 member
states party to the New York Convention.
Andre Agapov, President and CEO
of Rusoro said, "On behalf of Rusoro's board of directors, its
management and employees, and all of its stakeholders, we are
pleased that the Tribunal has recognized Venezuela's breaches of Rusoro's rights in
connection with its investments in the Venezuelan mining sector.
The company looks forward to collecting on the Award on behalf of
all of its stakeholders. We thank our legal team at Freshfields,
led by Nigel Blackaby and
Noah Rubins. We would also like to
acknowledge our consultants and technical teams for their
contribution and dedication. Finally, we thank our shareholders for
their continued support throughout this prolonged and difficult
process."
Calunius Capital has provided financing to Rusoro since the
commencement of the arbitration in 2012. Mick Smith of Calunius Capital commented: "it
has been a pleasure to work with Andre
Agapov and the Rusoro team over this period, who have been
so ably assisted by Freshfields in the arbitration. We are
delighted to have helped achieve such an excellent result for
Rusoro's shareholders and creditors".
ON BEHALF OF THE BOARD
"Andre Agapov"
Andre Agapov, President &
CEO
Forward-looking statements:
This document contains statements about expected or
anticipated future events and financial results that are
forward-looking in nature and as a result, are subject to certain
risks and uncertainties, such as general economic, market and
business conditions, the regulatory process and actions, technical
issues, new legislation, competitive and general economic factors
and conditions, the uncertainties resulting from potential delays
or changes in plans, the occurrence of unexpected events, and the
Company's capability to execute and implement its future plans.
Actual results may differ materially from those projected by
management. For such statements, we claim the safe harbour for
forward-looking statements within the meaning of the Private
Securities Legislation Reform Act of 1995.
"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."
SOURCE Rusoro Mining Ltd.