Rusoro says awarded $1.2 bln over Venezuelan seizure of gold assets (updated)

Rusoro Mining

23/08/2016 18:00

(Adds comment from Rusoro board member, background on dispute) 
    By Jim Finkle 
    TORONTO, Aug 23 (Reuters) - Canada's Rusoro Mining Ltd 
 RML.V  said on Tuesday it has been awarded more than $1.2 
billion by a World Bank tribunal that ruled Venezuela had 
unlawfully seized the company's gold assets four years ago. 
    Shares in the Vancouver-based mining firm, which is backed 
by Russia's Agapov family, more than doubled on Tuesday, trading 
for as much as 32 cents - their highest level since Venezuela's 
asset seizure.  
    Rusoro, whose shares had a market value of C$83 million ($64 
million) prior to Tuesday's rally, was one of about 20 Canadian 
miners and other international firms that filed complaints with 
the World Bank's International Center for Settlement of 
Investment Disputes, or ICSID, over Venezuela's action. 
    Rusoro, which was the largest gold miner operating in the 
South American country before the asset seizure, said the ICSID 
determined that Venezuela had unlawfully expropriated the 
company's investments without paying compensation. 
    ICSID representatives could not be reached for comment. The 
organization's website confirmed that a final ruling in the case 
had been issued on Monday, but did not provide details.  
    It was not immediately clear whether Venezuela intended to 
comply with the order, which stemmed from disputes over a 2011 
law that targeted international gold firms as part of an effort 
to overturn "the serious impact of the capitalist mining model." 
    While Canada's Gold Reserve Inc  GRZ.V  this month disclosed 
it had reached a settlement on a similar case, Venezuela has 
said it would fight an order from the same tribunal that it pay 
$1.4 billion to Canadian miner Crystallex International Corp 
over similar claims.  urn:newsml:reuters.com:*:nL2N17H25G 
    Rusoro, which has no employees or revenue, is "optimistic" 
that it can reach a final financial settlement with the 
Venezuelan government to end the five-year dispute, board member 
Gordon Keep told Reuters.  
    The board would probably return to shareholders "a good 
chunk" of any funds received, Keep said. 
    Representatives of Venezuela's mining ministry could not be 
reached for comment. 
    The Gold Reserve deal calls for Venezuela to pay $770 
million in damages and interest by the end of this year and buy 
technical mining data from the company for $240 million.  
 
 (Reporting by Jim Finkle in Toronto; Additional reporting by 
Anet Josline Pinto in Bengaluru and Diego Ore in Caracas; 
Editing by Savio D'Souza, Christian Plumb and Paul Simao) 
 ((jim.finkle@tr.com; +1 416-941-8185)) 
 
Keywords: RUSORO MINING LAWSUIT/