Salazar Resources Limited press release
Rusoro Awarded US$967.77 million by an ICSID Additional Facility Tribunal for the Expropriation of its Investments in Venezuela
TSXV - TSX Venture Exchange · Copper · Gold · Silver · Zinc · Canada
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Canada NewsWire
VANCOUVER, Aug. 23, 2016
Trading symbol (TSX-V): RML
VANCOUVER, Aug. 23, 2016/CNW/ - Rusoro Mining Ltd. (the "Company" or "Rusoro")welcomes the award (the "Award") issued on August 22, 2016by the Arbitration Tribunal ("Tribunal") operating under the Additional Facility Rules of the World Bank's International Centre for the Settlement of Investment Disputes ("ICSID") in the arbitration brought by Rusoro against the Bolivarian Republic of Venezuela("Venezuela"). The Tribunal awarded the Company damages of US$967.77 millionplus pre and post-award interest which currently equates to in excess of US$1.2 billion.
Rusoro filed its request for arbitration before ICSID on July 17, 2012under the Canada-Venezuela Bilateral Investment Treaty ("BIT"). In its Award, the Tribunal upheld Rusoro's claims that Venezuelabreached its obligations under the BIT by unlawfully expropriating Rusoro's investments without paying compensation and by imposing certain restrictions on the export of gold. As a result of these breaches, the Tribunal ordered Venezuelato pay damages of US$967.77 millionas of the date of the expropriation (16 September 2011), together with interest accrued between that date and the date of actual payment, calculated at a rate p.a. equal to US$ Libor for one year deposits, plus a margin of 4%, to be compounded annually. The amounts awarded must be paid net of any taxes imposed by Venezuela. The Tribunal also ordered Venezuelato contribute US$3.3 milliontowards Rusoro's costs in the arbitration.
The Award is due and payable immediately and Rusoro expects that Venezuelawill comply with its international obligations and make prompt payment of the award. The Award is immediately enforceable in any of the over 150 member states party to the New York Convention.
Andre Agapov, President and CEO of Rusoro said, "On behalf of Rusoro's board of directors, its management and employees, and all of its stakeholders, we are pleased that the Tribunal has recognized Venezuela'sbreaches of Rusoro's rights in connection with its investments in the Venezuelan mining sector. The company looks forward to collecting on the Award on behalf of all of its stakeholders. We thank our legal team at Freshfields, led by Nigel Blackabyand Noah Rubins. We would also like to acknowledge our consultants and technical teams for their contribution and dedication. Finally, we thank our shareholders for their continued support throughout this prolonged and difficult process."
Calunius Capital has provided financing to Rusoro since the commencement of the arbitration in 2012. Mick Smithof Calunius Capital commented: "it has been a pleasure to work with Andre Agapovand the Rusoro team over this period, who have been so ably assisted by Freshfields in the arbitration. We are delighted to have helped achieve such an excellent result for Rusoro's shareholders and creditors".
ON BEHALF OF THE BOARD
"_Andre Agapov_" Andre Agapov, President & CEO
Forward-looking statements:
This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
SOURCE Rusoro Mining Ltd.
Suite 3123 - 595 Burrard Street, Vancouver, BC V7X 1J1, Tel: 604-609-6110, Fax: 604-609-6145, Website: www.rusoro.comCopyright CNW Group 2016