Rusoro Mining Ltd.: Expiration of Negotiation Period with Venezuelan Government for Nationalization
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/14/12 -- Rusoro Mining Ltd. (TSX VENTURE: RML) ("Rusoro" or "the Company") reports the following:
The extended deadline of the 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 will expire as of the end of day today. At this time, the Company is not aware of any further extension.
The Nationalization Decree established an initial 90-day fixed negotiation period ending December 15, 2011, but was subsequently extended by decree No. 8683 for another 90 days, to March 14, 2012.
Therefore, in accordance with the procedures outlined in the Nationalization Decree, the Company believes that 100% of its Venezuelan mining concessions, related contracts and assets revert to the Venezuelan Government effective as of the end of today unless a further extension is granted.
To date, Rusoro is still in conversations with the Venezuelan Government but has not yet reached an agreement with respect to the compensation due to Rusoro pursuant to the nationalization of its gold-mining assets. The Company continues to seek an amicable resolution with the Venezuelan Government. However, Rusoro also continues to review its position, rights and claims under the bilateral investment treaty between Canada and Venezuela which provides that the Venezuelan Government must pay a fair, prompt and timely compensation as a result of the nationalization. In this regard, Rusoro will consider all steps necessary, including international arbitration, in order to protect its investments in Venezuela, and the interests of its stakeholders.
Background:
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, 100% of the Company's mining concessions, related contracts and 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."
Contacts:
Rusoro Mining Ltd.
Matias Herrero, CA, CPA
Chief Financial Officer
604-632-4044 or 1 800-668-0091
604-632-4045 (FAX)
info@rusoro.com
www.rusoro.com
