Spokane-based Gold Reserve Corp. Monday moved a step closer to securing deep underground mining rights at its Brisas gold mine in Venezuela.
Mining officials in the South American country granted Gold Reserve the Veta or deep underground rights to the promising gold mine.
Exploratory drilling has been under way at the site for several weeks, said Rockne J. Timm, Gold Reserve president. The company has been drilling as if they had already received the rights to dig deeper because Venezuelan officials were confident they would be granted, he said.
Before the final rights are given, other parties may oppose Gold Reserve’s actions, but Timm said that would be unlikely. “We are 99 percent of the way there,” he said.
Once the rights are secured, Gold Reserve will pay TVX Gold Inc. $4.5 million as the last part of the settlement with the Toronto-based company.
TVX Gold had challenged Gold Reserve’s ownership of the Brisas site in Venezuelan court for more than two years before settling last December. TVX Gold received common shares of Gold Reserve and cash for dropping all suits over the mine.
Gold Reserve’s stock closed Monday up 69 cents at $6.50.