Gold Reserve, Venezuela rework seizure settlement

Venezuela and Gold Reserve (TSE:GRZ), have agreed to rework the terms of a $770 million settlement relating to the seizure of the company's Las Brisas gold-copper mine in 2008.

The aggregate payments to be made by Venezuela have not changed and the payments will be completed seven months earlier than originally contemplated

The Spokane, Washington-based company announced a revised schedule of payments reducing the initial payment to $300m from $600m under the deal signed in February.  The first payout has also been pushed out by a month to end of November.

Gold Reserve said that "the aggregate payments to be made by Venezuela have not changed and the payments will be completed seven months earlier than originally contemplated."

According to a statement Gold Reserve and representatives of Venezuela convened a first meeting of the Board of Directors of the mixed company, of which Gold Reserve owns 45% and Venezuela owns 55%, at the end October. The purpose of the meeting was to "immediately initiate the development plan of the mine activities needed to commence construction as soon as possible."

Gold Reserve (OTCMKTS:GDRZF), worth $357m on New York's over the counter market, began work on the Las Brisas gold and copper project in 1992, but late President Hugo Chavez revoked the permit in 2009 after the firm had invested more than $300 million.

Several other international companies are still seeking compensation for projects expropriated and halted by the socialist administration in recent years.