Gold Reserve Files Response in Citgo Appeal, Supporting Venezuela's Request for Abeyance, Subject to Support of the United States
Gold Reserve seeks legal abeyance for its Citgo appeal as Venezuela requests time to repay creditors.
Gold Reserve Inc. (GRZ) filed a response supporting Venezuela’s motion for a six-month abeyance of the appeal regarding the judicial sale of PDVH shares to Elliott/Amber Energy. The company’s support is explicitly contingent on concurrent backing from the United States Administration.
The U.S. Court of Appeals for the Third Circuit has invited the U.S. government to submit its views by October 13, 2026. No U.S. filing has been submitted as of the release date. Gold Reserve argues that a purchase led by Venezuela and supported by the U.S. could provide a prompt, comprehensive resolution for creditors, aligning with the company's long-standing preference for a negotiated settlement over a forced sale.
Gold Reserve Inc. (GRZ) filed a procedural extension in an ongoing, multi-year litigation saga, a move that does not introduce new financial terms, alter the underlying $1.26 billion arbitral award, or change the company's operational roadmap. The request for an abeyance aligns with management's prior public statements regarding the need for time to pursue repayment and manage appellate timelines.
The market has already priced in the extended legal timeline following the Delaware court's acceptance of the $5.9 billion Elliott/Amber bid in late 2025.
Gold Reserve Inc. (GRZ) is a Bermuda-domiciled pre-revenue mining company focused on the Siembra Minera Project in Venezuela and an Alaskan property. The company holds a 45% interest in its flagship Siembra Minera project. A new Venezuelan mining law enacted in April 2026 removes mandatory state-majority participation, allowing for up to 100% foreign ownership.
In May 2026, Gold Reserve entered a binding earn-in agreement with Augusta Capital Corporation to fund $200 million in project expenditures. Under the terms of the deal, Augusta will earn a 50% interest in Gold Reserve’s stake and become the operator.
The company has also approved a dual spin-out to transform into an investment holding company. Mining assets will move to American Heralds Mining Corp., a U.S.-domiciled entity, while the 2014 arbitral award rights will transfer to Dalinar Energy Corp.