Rusoro Mining Provides Venezuela Update
Rusoro Mining Ltd. (RML.V), which closed Friday near a year low 9 cents, provided a Venezuela update, saying the 90-day negotiation 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 expired on December 15, 2011.
The Company has not been informed by the Venezuelan Government of an extension to the 90-day period nor does it have information whether its mineral titles and rights have expired and reverted to the Venezuelan Government.
It said: "Since the announcement of the Nationalization, meetings have been held with Government representatives in order to try to reach an amicable agreement on adequate and effective compensation for Rusoro, without success. In these circumstances, Rusoro has formally notified the Government of the existence of an investment dispute under the Agreement between the Government of Canada and the Government of the Republic of Venezuela for the Promotion and Protection of Investments (the Canadian Treaty) and the Agreement between the Bolivarian Republic of Venezuela and the Government of the Russian Federation for the Reciprocal Promotion and Protection of Investments (the Russian Treaty).
"Notwithstanding such notification, Rusoro remains open to continue amicable discussions with the Venezuelan Government with a view to the prompt settlement of this dispute. However, absent an acceptable settlement with the Venezuelan Government during the next six months, Rusoro reserves its right to submit its claims for adequate and effective compensation to an international arbitral tribunal constituted under the auspices of: (a) the Additional Facility of the International Centre for the Settlement of Investment Disputes (ICSID) in Washington DC; and/or (b) the Rules of the United Nations Committee on International Trade Law (UNCITRAL)."
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