Rusoro Mining News
| ||December 16, 2011|
Rusoro Provides Update on the Nationalization
Vancouver, Canada - Rusoro Mining Ltd. ("Rusoro" or "the Company") reports the following:
The 90-day negotiation period fixed by the Nationalization Decree No. 8413 to negotiate the compensation due to Rusoro and the terms of the migration of Rusoro's mining assets to a Mixed Enterprise to be controlled by the Venezuelan Government expired on December 15, 2011.
The Company has not been informed by the Venezuelan Government of an extension to the 90-day period nor does it have information whether its mineral titles and rights have expired and reverted to the Venezuelan Government.
Since the announcement of the Nationalization, meetings have been held with Government representatives in order to try to reach an amicable agreement on adequate and effective compensation for Rusoro, without success. In these circumstances, Rusoro has formally notified the Government of the existence of an investment dispute under the Agreement between the Government of Canada and the Government of the Republic of Venezuela for the Promotion and Protection of Investments (the Canadian Treaty) and the Agreement between the Bolivarian Republic of Venezuela and the Government of the Russian Federation for the Reciprocal Promotion and Protection of Investments (the Russian Treaty).
Notwithstanding such notification, Rusoro remains open to continue amicable discussions with the Venezuelan Government with a view to the prompt settlement of this dispute. However, absent an acceptable settlement with the Venezuelan Government during the next six months, Rusoro reserves its right to submit its claims for adequate and effective compensation to an international arbitral tribunal constituted under the auspices of: (a) the Additional Facility of the International Centre for the Settlement of Investment Disputes (ICSID) in Washington DC; and/or (b) the Rules of the United Nations Committee on International Trade Law (UNCITRAL).
On September 16, 2011, the Venezuelan government, through publication in the Official Gazette of Venezuela, enacted a law-decree 8413 ("Nationalization Decree" or "Decree") which reserves to the State of Venezuela exclusive rights for the extraction of gold in Venezuela ("the Nationalization"). According to the Decree, all Venezuelan mining assets, including those of the Company, must be transferred to a new mixed-interest enterprise ("Mixed Enterprise"), of which private enterprises, such as the Company, cannot own more than 45%. The Decree stipulates that the Company had 90 days from September 16, 2011 to negotiate the terms and conditions of the forced migration of mining assets to the Mixed Enterprise, including the compensation to the Company for assets transferred to the Mixed Enterprise as a result of the Nationalization. If the Company is unable to agree upon the terms and conditions of the forced migration within the designated time period, all titles and rights to the Company's Venezuelan mining assets will revert to the Venezuelan government, provided that no extension is granted on the negotiation period.
ON BEHALF OF THE BOARD
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."
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