Gold junior Rusoro Mining is expecting the first $100-million of its $1.28-billion settlement with the Venezuela government in November, the TSX-V-listed miner reported on Friday, announcing the execution of its previously announced settlement.
In terms of the agreement, Rusoro will suspend legal enforcement of the award upon the completion of the initial payment and the company will deliver its mining data to Venezuela.
Venezuela has agreed to pay the balance of the amounts due under the settlement agreement in monthly instalments over five years, starting in January 2019, Rusoro said in a news release.
Rusoro pursued international arbitration against Venezuela, after the South American nation’s government expropriated its assets without compensation in 2011.
The former foes have agreed to consider a partnership to restart the Choco 10 and San Rafael-El Placer operations. Rusoro and Venezuela will constitute a mixed commission to evaluate the status of the projects and to determine if the parties should proceed with a joint venture.
"The signing of this agreement represents a significant milestone in our continued relationship with Venezuela and we are excited for the company and its shareholders to begin this new chapter," commented Rusoro chairperson Vladimir Agapov.
Shares in Rusoro jumped 23% to C$0.055 apiece on Friday.