Gold Reserve Raises Stake In Gold Mine

Spokane-based Gold Reserve Corp. said Wednesday that it will exchange shares with two Venezuelan companies to gain 100 percent ownership of its gold mine there.

Gold Reserve owns 91 percent of the Brisas Concession in southeastern Venezuela. The company continues to develop the promising mine after settling a long court battle with TVX Gold Inc., which challenged Gold Reserve’s ownership.

Gold Reserve will exchange its shares for shares of Gold Reserve de Aruba A.V.V. and Glandon Co. A.V.V., which own the other 9 percent of Brisas. The deal is subject to regulatory approval and the approval of Gold Reserve shareholders at their May 19 annual meeting.

If approved, the exchange will make the two Venezuelan companies subsidiaries of Gold Reserve. The new company structure simplifies the ownership of the site, the company said.

The Brisas mine represents the cornerstone of Gold Reserve’s growth potential.

Gold Reserve’s stock ended Wednesday at $6.88, up 25 cents.