Trading symbol (TSX-V): RML
VANCOUVER, Oct. 19, 2018 /CNW/ - Rusoro Mining Ltd.
(the "Company" or "Rusoro") announces that it has
executed a settlement agreement ("Settlement Agreement") with the
Bolivarian Republic of Venezuela
("Venezuela") by which Venezuela
agrees to pay Rusoro over US$1.28
billion to acquire the Company's mining data and for full
release of the arbitral award (the "Award") issued in favor of the
Company in August 2016 by a tribunal
constituted pursuant to the Additional Facility of the
International Centre for Settlement of Investment Disputes.
The Settlement Agreement includes, among other terms:
- Venezuela has agreed to pay
the Company an initial payment of US$100
million in November 2018. Upon
completion of that initial payment, the Company will suspend the
legal enforcement of the Award and deliver the Company's mining
data to Venezuela.
- Venezuela has agreed to pay
the balance of the amounts due under the Settlement Agreement in
monthly installments over five years, starting in January 2019.
- Upon the final and full payment of the Settlement Agreement,
the Company will cease all legal activities related to the
collection of the Award.
- The Company may resume the legal enforcement of the Award if
any payment due under the Settlement Agreement is not received by
the Company within the periods provided in the Settlement
Agreement. The Company may also terminate the Settlement Agreement
in certain scenarios if Venezuela
defaults on its obligations.
- Venezuela retains the right to
continue the proceedings to set aside the Award at the seat of the
arbitration in Paris. If the Award
were set aside, Rusoro will retain any payments made until that
date as consideration for the termination of its mining rights and
acquisition of its mining data.
In addition, the parties will constitute a Mixed Commission to
evaluate the status of Rusoro's former projects and determine if
the parties should proceed with a joint venture.
"The signing of this agreement represents a significant
milestone in our continued relationship with Venezuela and we are excited for the Company
and its shareholders to begin this new chapter," commented
Vladimir Agapov, Chairman of
Rusoro.
ON BEHALF OF THE BOARD
"Gordon Keep"
Gordon Keep, Director
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 timing and amount of settlement
payments, 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.