CARACAS -- Gold Reserve Inc. (Canada TSE: GRZ.V / US OTC BB: GDRZF) released their 2017 financials early Friday morning which show that Venezuela has not paid on their settlement agreement since November, according to investment bank Caracas Capital.
In 2014, Gold Reserve won a $750 million judgment against Venezuela at the World Bank's International Center for the Settlement of Investment Disputes (ICSID) over the 2008 expropriation of its Brisas gold mining project in Venezuela.
After diligent worldwide enforcement tactics by Gold Reserve, Venezuela agreed to pay Gold Reserve a billion dollar settlement beginning in June 2017.
In June 2017 Gold Reserve paid a $40 million start and basically agreed to pay $29.5 million on the 10th of every month until the $1 billion was paid off. Venezuela also offered Gold Reserve the opportunity to partner with them in reopening a mining operation in Bolivar state.
"Today's bad news from Gold Reserve turns out to be that they have only been able to collect $128.5 million and have not been getting paid -- like most Venezuela bondholders -- since President Nicolas Maduro announced the "renegotiation and restructuring" of the country's debt in early November," reports Russ Dallen of Caracas Capital in a report to investors early Friday morning. "Since Major General Manuel Quevedo took over PDVSA and the Ministry of Oil and Mining in late November, Gold Reserve reports that they have received nothing."
Gold Reserve reports that Venezuela is now behind on $147.5 million of settlement payments.
"This also jives with the payments to bondholders -- or the lack thereof -- which also stopped around that time," reports Dallen.