Gold Reserve, Inc. (GDRZF: OTCQB) | Gold Reserve Seeks Enforcement of its US$ 713 Million Award and Costs Against Venezuela in the US District Court for the District of Columbia

Gold Reserve Seeks Enforcement of its US$ 713 Million Award and Costs Against Venezuela in the US District Court for the District of Columbia

Dec 01, 2014

OTC Disclosure News Service

Gold Reserve Inc. (TSX.V:GRZ) (OTCQB:GDRZF) (the “Company”), reports
that on November 26, 2014 it filed, in the US District Court for the
District of Columbia (“DDC”), a petition to confirm the US$ 713 million
Award (the “Award”) plus costs dated September 22, 2014 in the
arbitration before the World Bank’s International Centre for Settlement
of Investment Disputes (“ICSID”) against the Republic of Venezuela
relating to the Brisas Project.

The petition for confirmation is a summary proceeding brought under the
United Nations Convention for the Recognition and Enforcement of Foreign
Arbitral Awards (June 10, 1958), 21 U.S.T. 2517, 330 U.N.T.S. 38 (the
“New York Convention”) and Chapter 2 of the Federal Arbitration Act
(“FAA”), 9 U.S.C. §§ 201 et seq.

Once the Award is confirmed it will be executable in the United States
as a judgment of the court. The Company remains firmly committed to the
enforcement and collection of the Award including accrued interest in
full and will continue to vigorously pursue all available remedies
accordingly in every jurisdiction where it perceives that it can draw a
benefit that will bring it closer to a definitive resolution of this
matter. In the meantime, the Award accrues interest at the rate of Libor
plus 2% per annum until satisfaction of the Award.

Further to its update to Shareholders November 6, 2014, the Company is
pleased to report a number of developments in connection with its
efforts to collect on the final Award:

Activities at ICSID

After receiving written submissions by the parties in reply to each
other’s request for correction of the Award, the arbitral tribunal
informed the parties that it did not foresee any further steps in the
procedure. Despite Venezuela’s subsequent requests for an opportunity to
respond to the Company’s submissions and for an oral hearing (both of
which have been objected to by the Company), we are confident that the
arbitral tribunal will render a decision shortly.

Activities in France

Two days prior to the hearing scheduled for November 27, 2014, Venezuela
filed submissions, opposing the Company’s request for exequatur
and, in the alternative, requesting a stay of execution pending the
determination of its application for annulment of the Award. At the
Paris Court of Appeal hearing on November 27, 2014, the Court approved
the Company’s request to postpone the hearing until January 8, 2015 to
allow the Company to reply to Venezuela’s response. The Company plans to
file its reply to Venezuela’s response in two weeks allowing Venezuela
sufficient time to respond prior to the January 8, 2015 hearing.

Activities in the United States

On November 26, the Company filed a petition to confirm the Award in the
District of Columbia. The petition now needs to be served on Venezuela
who will respond in writing with any arguments it believes it has
against the petition for confirmation. Thereafter, the Company will be
entitled to respond to these arguments, should it deem it necessary. The
Court may set a hearing to resolve any questions regarding the petition
but this is not required.

Under the New York Convention, the confirming court is not entitled to
review the merits of the decision but simply to verify that the arbitral
award meets the requirements of the Convention, and that no exception to
the Convention’s rule of recognition and enforcement is present.
Accordingly, an arbitral award, such as the Award, must be confirmed,
unless the award debtor who opposes the confirmation, satisfies the
confirming court, by adducing sufficient proof, that:

 

 

 

 

 

(a)

 

The parties to the arbitration agreement were, under the law
applicable to them, under some incapacity, or the said agreement is
not valid under the law to which the parties have subjected it or,
failing any indication thereon, under the law of the country where
the award was made; or

 

(b)

The party against whom the award is invoked was not given proper
notice of the appointment of the arbitrator or of the arbitration
proceedings or was otherwise unable to present his case; or

 

(c)

The award deals with a difference not contemplated by or not falling
within the terms of the submission to arbitration, or it contains
decisions on matters beyond the scope of the submission to
arbitration; or

 

(d)

The composition of the arbitral authority or the arbitral procedure
was not in accordance with the agreement of the parties, or, failing
such agreement, was not in accordance with the law of the country
where the arbitration took place; or

 

(e)

The award has not yet become binding on the parties, or has been set
aside or suspended by a competent authority of the country in which,
or under the law of which, that award was made.

Confirmation of an arbitral award such as the Award, may also be refused
under the New York Convention if the confirming court finds that:

 

 

 

 

 

(a)

 

The subject matter of the difference is not capable of settlement by
arbitration under the law of the United States; or

 

(b)

The confirmation of the award would be contrary to the public policy
of the United States.

Information regarding the Company can be found in its regulatory filings
and by going to the following websites: www.goldreserveinc.com,
www.sec.gov
and www.sedar.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This release contains “forward-looking statements” or
“forward-looking information” as such terms are defined under applicable
U.S. and Canadian securities laws (collectively referred to herein as
“forward-looking statements”) with respect to the ICSID Award related to
the expropriation of the Company’s Brisas Project by the Venezuela
government.
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 such
as, among other things, the Company’s ability to collect such Award.

We caution that such forward-looking statements involve known and
unknown risks, uncertainties and other risks that may cause the actual
outcomes, financial results, performance, or achievements of Gold
Reserve to be materially different from our estimated outcomes, future
results, performance, or achievements expressed or implied by those
forward-looking statements

Factors that could cause actual results to differ materially from
those in the forward-looking statements include the timing of and amount
of collection of the Award, if at all.

This list is not exhaustive of the factors that may affect any of
Gold Reserve’s forward-looking statements. 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 U.S. or Canadian 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.”

Copyright © 2014 Businesswire. All Rights Reserved

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

Article source: http://www.otcmarkets.com/stock/GDRZF/news?id=92672

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