Gold Reserve Sues Rusoro Mining Over Alleged Breach in Citgo Auction Bid

Toronto-listed miner Gold Reserve Inc. has filed a complaint in a Delaware court against Rusoro Mining Ltd. (RML.V), accusing the company of breaching contractual obligations under a consortium agreement related to the court-organized auction of Citgo Petroleum’s parent company.

Gold Reserve claims Rusoro failed to uphold its commitments in the bidding process, where both companies had agreed to jointly submit a bid incorporating Rusoro’s $1.5 billion claim linked to expropriated Venezuelan assets. The miner is now seeking preliminary injunctive relief to prevent Rusoro from participating in the sale process while legal proceedings continue, among other remedies.

The dispute follows the auction outcome in August, where a $5.9 billion offer from an Elliott Investment Management affiliate was recommended as the winning bid, surpassing Gold Reserve’s $7.9 billion proposal that had included Rusoro’s claim. The legal challenge could complicate the final stages of the Citgo sale, which has drawn significant attention due to its ties to Venezuela’s long-running asset disputes.

Pic Courtesy: google/ images are subject to copyright