felix, I read it differently. In order to begin asset seizure two requirements must be met. The first component is the "sufficient amount of time" having passed, which was just confirmed. Now the company can proceed with registering that judgment in other courts.
The other component is probably more complicated where the proposed seized assets must meet certain benchmarks before any assets can be attached.
Never expected that. Apparently both parties needed to agree on the much earlier date. Why VZ didn't take the opportunity to stall until the end of the year is beyond me.
Thursday, January 21, 2016
Gold Reserve Inc. asked for permission Wednesday to register in other federal courts a D.C. federal judge's order affirming a $740 million arbitration award against Venezuela in a mining rights dispute, the same day the judge affirmed that sufficient time had passed for the company to start collecting its money.
The shares mentioned previously were all at $2.50 and were all listed as common Class A shares sold into the open market.
There is another group at $1.82 which are listed as options/employee compensation. When sales are options related, we usually see two trades - a buy and sell - of equal amounts. There is one such case at $1.82
With the Class A shares, there was no offsetting buys to the sells.
I see about 600k shares recently sold by GRZ management.
Doug alone sold close to 170k shares (apparently) into the open market for $2.50 per share. Timm Rockne sold a few more shares than that at the same price.
Five others also sold shares.
It's not clear if the posted sales numbers was in dollars or number of shares sold. Either way, management is selling. Maybe it's got something to do with being the beginning of the year but still, it would seem they don't have faith going forward.
Even the Paris hearing, which was supposed to originally take place a couple of months ago but was re-scheduled for February, was re-re-scheduled for October. Then an opening came up in March, which both parties must agree to. I got a feeling I know what VZ's decision will be.
Good heavens. As if this nightmare weren't bad enough. I wasted 10 seconds of my life reading this which I'll never get back.
Perhaps the most important bit I got was this:
"...Gold Reserve said Dec. 8 that the country has taken no steps to pay..."
So, despite the company's PRs stating they are in contact with VZ about finding an amicable resolution, apparently getting paid isn't one of them.
The dispute is rooted in the allegedly wrongful revocation of mining permits and cancelation of licenses held by the company for the Brisas project, which was one of the largest undeveloped gold and copper deposits in the world.
Gold Reserve kicked off arbitration proceedings at the International Centre for Settlement of Investment Disputes in 2012 and claimed that Venezuela breached a bilateral investment treaty with Canada through its alleged actions. The award favoring Gold Reserve was issued in September 2014.
While an appeal is pending, Gold Reserve petitioned the federal court to affirm the award. But Judge Boasberg backed the tribunal's decision and took a mostly hands-off approach regarding the merits of the dispute.
The judge found the tribunal correctly ruled that Gold Reserve Inc., and not one of its subsidiaries, was an investor that could properly bear the claims at issue. Although he admitted at one point in the ruling that the relationship between the Canadian entity and the South American concessions was complex, he provided an ownership flowchart "for those more spatial learners.”
He also rejected Venezuela’s arguments that it didn't have a fair opportunity to present its case or that it was deprived of due process, noting the lengthy arbitration proceeding and the fact that the tribunal made its decision on the merits of the dispute with Gold Reserve.
Venezuela told a D.C. federal court Wednesday that it will appeal the court’s upholding in November of a $740 million arbitration award the country was ordered to pay to mining company Gold Reserve Inc.
The company’s move to appeal comes days after Gold Reserve said Dec. 8 that the country has taken no steps to pay, seeking an order from the court that a “reasonable period of time had elapsed” after the Nov. 20 judgment, and threatens to prolong a years-long dispute.
“Venezuela appeals from the entirety of the November 20, 2015 order, including, to the extent necessary, from the memorandum opinion dated November 20, 2015 on which the order relies,” the country said. “Venezuela also appeals from all prior judgments and orders entered in this case.”
The law firm for Venezuela, Foley Hoag LLP, said in an emailed statement that it will appeal because of "serious legal and factual errors" in the lower court's opinion.
"The District Court prematurely and erroneously confirmed the arbitration award even as the Paris Court of Appeal is considering a petition to set aside the award based on the significant errors by the arbitration tribunal," the statement said. "The tribunal’s errors include misapplication of the provisions of an international investment treaty and fundamental tenets of international law."
"Venezuela’s appeal seeks to protect its right to have those issues properly and finally decided before being forced to pay an erroneous award in a country that has nothing to do with the dispute," the statement added.
Canada-based Gold Reserve had petitioned the court to affirm the award, contending among other things that Venezuela had waived the right to argue that damages were improperly awarded to the wrong party. U.S. District Court Judge James E. Boasberg ultimately ruled in Gold Reserve's favor, finding that a Paris arbitration tribunal's decision should be given a great deal of deference and that it made the right call on the issues in the dispute.
VZ can make that offer but they are dreaming. GRZ is going after VZ assets around the world. VZ hold no cards. It doesn't matter how likely they are to pay. They have no choice.
I don't want to own a gold mine. I don't want to own a gold mine in VZ. I don't want to own a gold mine with gold in a bear market, which might last for many years to come. I don't want to own a gold mine when we have no cash to develop that mine. I don't want to own a gold mine and have to sell it at a fire sale price because of the conditions above.
This whole legal thing has gone on for 7 years and to throw away all we endured and start from square one is not something I want to be a part of. I, we've, waited too long.
The majority of VZ's legal options will run out in the next few months.
The only sensible conclusion is for GRZ to continue to pursue, then seize, VZ's assests until we are made whole. Accept no promises VZ makes.
I hope Brisas is not returned and I hope Doug won't accept anything less than $750 million cash. Let's get paid and get out.
Application for Annulment of the September 22, 2014 ICSID Arbitral Award
In late October 2014, Venezuela filed an application before the Paris Court of Appeal, declaring its intent to have the Award annulled or set aside. According to the initial schedule established by the Paris Court of Appeal, written pleadings were supposed to be closed by October 15, 2015 and the hearing of Venezuela’s application to annul was to take place on November 3, 2015. Because the president of the section who was to rule on the case has been promoted to become a judge at the French Supreme Court, the Paris Court of Appeal decided to postpone the hearing from November 3, 2015 to February 4, 2016, and subsequently postponed the date of the closure of the proceedings from October 15, 2015 to December 3, 2015, upon Venezuela’s request. At this stage, the Company expects that a judgment on Venezuela’s application will be rendered in spring 2016, although this is a matter over which the Company has no control.