SPOKANE, WA,
June 21, 2012 /CNW/ - Gold Reserve
Inc. (TSX VENTURE:GRZ) (NYSE-MKT:GRZ) (the "Company") announced
today the expiration and final results of its previously announced
offer regarding the Notice of Right of Repurchase for its 5.50%
Senior Subordinated Convertible Notes due 2022 (the "Notes"), which
offer expired at 5:00 p.m.,
New York City time, on
June 15, 2012.
As required by the Indenture (the "Indenture"), dated
May 18, 2007, by and among the
Company and The Bank of New York Mellon, as successor in interest
to The Bank of New York, as
Trustee ("Trustee") and the Co-Trustee named therein, the Company
offered (the "Offer") to each holder of the Notes ("Holder") the
right to sell (the "Put Option"), upon the terms and subject to the
conditions set forth in the Indenture, the Notes, for cash, to the
Company. At the time of the Offer, an aggregate of $102,347,000 in principal amount of Notes were
outstanding.
The paying agent for the Offer has advised the Company that as
of the expiration of the Put Option, $18,036,000 in principal amount of outstanding
Notes have been validly tendered and not validly withdrawn. In
accordance with the terms of the Offer, the Company has accepted
all of the tendered Notes that were not validly withdrawn for
payment of cash equal to the outstanding principal amount, plus
accrued and unpaid interest up to, but not including, June 15, 2012.
Pursuant to its previously announced agreement with three
Holders (the "Large Noteholders") of approximately $77,187,000 in principal amount of Notes
remaining outstanding after the expiration of the Offer, the
Company intends to restructure the Notes held by such Holders
("Restructuring") and offer to Holders of the remaining outstanding
Notes an opportunity to participate in the Restructuring as soon as
reasonably practicable but no sooner than 10 business days after
the expiration of the Offer, subject to applicable legal
requirements and compliance with the terms of the Indenture.
Following completion of the Restructuring transactions, the
Company intends to redeem all Notes that have not been repurchased
pursuant to the Put Option or restructured pursuant to the
Restructuring as soon as practicable, subject to applicable legal
requirements and compliance with the terms of the Indenture.
For further information please refer directly to the Schedule TO
Amendment # 3 and all other related filings for further details at
www.goldreserveinc.com, www.sedar.com or www.sec.gov.
"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."
SOURCE Gold Reserve Inc.