Gold Reserve has requested compensation from the Venezuelan Government for losses incurred when Venezuela breached its agreement with Canada for the promotion and protection of investments, including the Brisas project and the Choco 5 property.
According to Gold’s request, investments by the company in Venezuela were unlawfully taken away from it due to decisions and actions directed by Venezuelan President Hugo Chavez.
Gold says the government unreasonably deferred permitting procedures for the Brisas project.
Other alleged expropriatory acts include the refusal by the Venezuelan Ministry of Mines for the expansion of the Brisas del Cuyuni alluvial gold concession for erroneous and pretextual factors and in disregard of Venezuela's mining law.
Such actions are against the Canada-Venezuela treaty, according to Gold, including protection against illegal expropriation and treatment in line with international law.
Gold says as a result, it experienced substantial loss and damage, including the value of the company's investments in Venezuela.
The company says it will pursue compensation for the total loss and damage caused by Venezuela's conduct.