Trading symbol (TSX-V): RML
VANCOUVER, May 8, 2018 /CNW/ - Rusoro Mining
Ltd. (the "Company" or "Rusoro") announces that on
May 7 and 8, the Company filed
lawsuits in Houston and
Calgary in connection with its
ongoing effort to enforce judgments totaling approximately
US$1.34 billion entered by courts in
the U.S. and Canada following
Venezuela's expropriation of
Rusoro's gold mining properties in Venezuela. These U.S. and
Canadian judgments recognize and allow enforcement of an
international arbitration award issued under the auspices of the
World Bank in favor of Rusoro against Venezuela for its illegal expropriation. In
addition to the Venezuelan state, the lawsuits name as defendants
Petroleos de Venezuela, S.A.
("PDVSA"), PDVSA's U.S.-based subsidiaries PDV Holding, Inc.,
Citgo Holding, Inc., Citgo Petroleum
Corporation, and several of the U.S. companies' directors.
Each case alleges that Venezuela orchestrated a series of fraudulent
transactions, which were undertaken by the defendant corporations
to remove Venezuelan assets from the
United States, where they may be vulnerable to judicial
seizure and execution, to Venezuela, where they almost surely will be
unreachable by Venezuela's
creditors. Specifically, Rusoro alleges that Venezuela instructed PDVSA, its state-owned
oil conglomerate, and several of PDVSA's U.S.-based affiliates to
engage in debt transactions that had the effect of leaving the U.S.
companies highly leveraged, and ultimately insolvent. In one
instance, Rusoro alleges that PDVSA directed Citgo Holding, the corporate parent of Citgo
Petroleum, a U.S.-based petroleum refiner and retailer, to borrow
US$2.8 billion, and to pay the loan
proceeds to PDVSA as a "dividend". In another instance,
Rusoro alleges that PDVSA, acting at Venezuela's direction, restructured and
delayed the maturity of certain bonds and pledged the stock of its
U.S.-based affiliates as collateral for the new bonds. Rusoro
alleges that neither of these transactions had any legitimate
business purpose, and that each was undertaken for the improper
purpose of frustrating the ability of Venezuela's creditors, including Rusoro, to
enforce their claims against the country, which total in the tens
of billions of dollars.
In addition to challenging these transactions, each of the cases
asks the court to allow Rusoro to enforce the judgments it holds
against Venezuela against PDVSA
and the U.S.-based defendant corporations. Specifically, each
lawsuit alleges that Venezuela,
through both a series of formal government decrees and in practice,
dominates the corporate entities so completely that they should be
considered a part of the Venezuelan government and made liable for
the judgments against Venezuela.
While Rusoro would prefer a consensual resolution of its dispute
with Venezuela, if Venezuela continues in its refusal to settle
its debts to Rusoro on a consensual basis, Rusoro will continue to
take all measures available to it to enforce the judgments and, if
necessary, to seize Venezuelan assets in order to satisfy
them. Rusoro has served extensive discovery against
Venezuela in the United States designed to locate
Venezuelan assets around the world. Based on the information
obtained in discovery, Rusoro will pursue enforcement against
Venezuela in any country where it
maintains assets until Venezuela
has satisfied the award in full.
ON BEHALF OF THE BOARD
"Andre Agapov"
Andre Agapov, President &
CEO
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.
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.
SOURCE Rusoro Mining Ltd.