Gold Reserve Ltd. (TSX.V: GRZ) (OTCQX: GDRZF) has officially filed for international arbitration against the government of Venezuela, seeking compensation for the expropriation of its mining rights and investments in the Siembra Minera project.
The arbitration, filed by Gold Reserve’s wholly owned subsidiary, GR Mining (Barbados) Inc., is being pursued under the Additional Facility Rules of the International Centre for Settlement of Investment Disputes (ICSID), a division of the World Bank in Washington, D.C.
This legal action stems from Venezuela’s alleged unlawful and arbitrary measures, which stripped GR Mining of its rights and significantly impacted its multi-billion-dollar investment in the country’s gold mining sector.
While the precise damages are still being assessed, Gold Reserve estimates its losses to exceed USD $7 billion. This case marks a significant development in the ongoing disputes between foreign investors and the Venezuelan government over mining and natural resource projects.
For updates on this arbitration and its potential impact on the mining industry, stay tuned to CanadianJeweller.com.
