Gold Reserve completes $30 million private placement

Gold Reserve Ltd. (TSX.V: GRZ) (OTCQX: GDRZF) announced the completion of a private placement that raised approximately $30 million in gross proceeds. The company sold 9,677,500 common shares at $3.10 per share, including the full exercise of an over-allotment option.

Cantor Fitzgerald Canada Corporation served as sole agent and bookrunner for the offering. Following the completion, Gold Reserve has 122,714,914 common shares issued and outstanding.

The company paid Cantor Fitzgerald Canada Corporation a cash commission of $1,215,045 in connection with the offering. Gold Reserve stated that net proceeds will be used for expenditures related to its credit bid for common shares of PDV Holdings, Inc., the indirect parent company of CITGO Petroleum Corp., as well as for working capital and general corporate purposes.

Two company insiders participated in the offering, purchasing 3,774,000 common shares for gross proceeds of $11,699,400. These transactions are considered related party transactions under Canadian securities regulations but are exempt from valuation and minority shareholder approval requirements because the fair market value of the consideration does not exceed 25% of the company's market capitalization.

Common shares sold to investors outside Canada were sold pursuant to OSC Rule 72-503 and will be free from resale restrictions under applicable Canadian securities laws, provided the trade is not a control distribution.

The information is based on a company press release statement.

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