Rusoro Mining
Rusoro Mining, incorporated in British Columbia on March 1, 2000, focuses on the operation, acquisition, exploration, and development of gold mining and mineral properties, primarily in Venezuela.
History of Rusoro Mining
Rusoro Mining was incorporated under the laws of the Province of British Columbia on March 1, 2000. The company has principally engaged in the operation, acquisition, exploration, and development of gold mining and mineral properties. During its active years in mining, Rusoro received mining concessions in Venezuela to explore and develop alluvial and vein gold resources. The company notably held major stakes in two producing gold mines, the Choco 10 and Isidora mines, before 2012.
Gold Mining Operations in Venezuela
Rusoro Mining was heavily involved in gold mining operations in Venezuela. It acquired a 95% ownership interest in the Choco 10 mine on November 30, 2007, and a 50% ownership in the Isidora mine on December 23, 2008. The Isidora mine was operated under a joint venture agreement with the Venezuelan government, showing Rusoro's significant presence in the mineral exploitation sector within the country. The company continued these operations until March 14, 2012.
International Arbitration and Legal Proceedings
In 2012, Rusoro Mining faced challenges that led to significant legal actions. On July 17, 2012, the company filed a Request for Arbitration under the Additional Facility Rules of the International Centre for Settlement of Investment Disputes (ICSID) against the government of Venezuela. This was followed by entering into a litigation funding agreement with a subsidiary of the Calunius Litigation Risk Fund LP in June 2012 to cover legal costs. This arbitration culminated in an award compensation of $967.77 million plus interest on August 22, 2016, highlighting the high-stakes nature of international investment disputes.
Settlement Agreement with the Venezuelan Government
In October 2018, Rusoro Mining reached a significant milestone by executing a settlement agreement with the Venezuelan government. This agreement entailed compensation of over $1.28 billion, payable in monthly instalments through to 2023. The settlement was in exchange for the company's mining data and a full release of the ICSID Award, signifying the resolution of prolonged legal disputes and arbitration.