News

April 29, 2009

Rusoro Expects Production To Top 500,000 Ounces In 2012 Without any Further Acquisitions

By Charles Wyatt

When last we wrote about Rusoro Mining it was making a bid for Gold Reserve, another company operating in Venezuela, whose Brisas mine had been put on hold since Hugo Chavez, no lover of North Americans, revoked the construction licence. The difference between the two companies is that Rusoro is looked on as a Russian company and Venezuela and Russia continue to strengthen political and economic ties. It has been operating in Venezuela since 2003 with the Agapov family in control, has lived up to all its promises, and last year was declared partner of choice by the Chavez government, a declaration of mutual regard consummated by the formation of the Isidora/Camorra ‘mixed enterprise’ company for exploiting any other projects in the country. Rusoro had already made a friendly approach last year before it went hostile, but Gold Reserve wriggled off the hook as a result of a ‘poison pill’ defence allowed under Canadian regulations.

What was quite clear was that the directors of Gold Reserve were more interested in their own jobs than the interests of their shareholders, but this will not be the end of the story. As George Salamis, president of Rusoro points out, his company has plenty of work on its hands so it is not in a hurry to acquire Gold Reserve. It will monitor the situation and as things become more difficult for Gold Reserve in Venezuela it may make another move, but the price offered is likely to be lower....