Gold Reserve Completes Redemption of Outstanding 11% Convertible Notes and Provides a Venezuelan Update
NR 17-11
GOLD RESE G ERVE COM MPLETES R REDEMPTION OF OU UTSTANDI ING 11% CONVERT TIBLE NOT TES AND P PROVIDES S A VENEZUELAN UP PDATE
SPOKAN NE, WASHIN NGTON, Aug gust 11, 2017
Gold Rese erve Inc. (TSX X.V: GRZ) (O OTCQX: GD DRZF) (“Gold d Reserve” or the “Compan ny”) is please ed to ust 10, 2017 it completed its previously announced re f its outstanding announce that on Augu edemption of tes. The Com senior not nnounces that it has receive mpany also an ed the schedu uled August payment of US$29.5 m million under r the terms of the Settlemen nt Agreement t with Venezu uela.
ystem which will Also, on A August 10, 20 017 the Comp pany shares co ommenced qu uotation on th he OTCQX Sy he Company’s visibility in give real t time trading d data for investors in the Un nited States an nd increase th n the market.
The Comp pany redeeme ed approxima ately US $30.8 8 million in a aggregate prin ncipal amount t of its outstan nding senior not tes, comprisin ng approxima ately US $10.4 4 million of it ts 11% Senio or Secured Co onvertible Not tes due 2018 (the “Conver rtible Notes”) and approxim mately US $4 4.8 million of its 11% Seni ior Secured the “Notes”). In Interest N Notes due 2018 (the “Intere est Notes” and d together wit th the Conver rtible Notes, t ely US $15.6 million aggre addition, c certain noteho olders, at thei ir election, ha ave converted d approximate egate principal amount of No otes.
The Notes s were redeem med for cash a at a redemptio on price of 12 20% of the ou utstanding pri incipal amoun nt of redemption price the redeem med notes plu us accrued int terest to the re edemption da ate. According gly, the total r paid by th he Company i included appr roximately US S $17.8 millio on related to t the redemptio on premium a and accrued an nd unpaid int terest on the N Notes. The red demption was s made pursuant to the ind denture govern ning the Notes and the terms of the notice of redempti ion. As a resu ult of receivin ng the August t payment from m Venezuela a and the rede emption of th he Notes, the C Company cur rrently has app proximately U US $80.4 mil llion in cash.
The Comp pany issued a approximately y 5.2 million a additional Cla ass A commo on shares in co onnection wit th the conversions described above, resulti ing in approx ximately 97.5 million share es outstanding g.
Further in nformation re egarding the Company can n be located at www.gold dreserveinc.co om, www.sec c.gov, and www.sedar.com.
Gold Res serve Inc. Co ontact
A. Dougla as Belanger, P President 999 W. R Riverside Ave.
., Suite 401 Spokane, W A 9920 I U USA Tel. (509)
) 623-1500 Fax (509)
) 623-1634
Neither th he TSX Ventur re Exchange nor its Regula ation Services Provider (a as that term is s defined in policies of f the TSX Ven nture Exchang ge) accepts re esponsibility f for the adequ uacy or accur racy of this re elease.