HOUSTON (Reuters) -Toronto-listed miner Gold Reserve said on Monday it filed a complaint in a Delaware court against Rusoro Mining for alleged breach of its contractual obligations under a consortium agreement to submit a bid for the parent of Citgo Petroleum in a court-organized auction. A $5.9 billion bid by an affiliate of Elliott Investment […]
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Gold Reserve goes against Rusoro for alleged contract breach in Citgo auction
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HOUSTON (Reuters) -Toronto-listed miner Gold Reserve said on Monday it filed a complaint in a Delaware court against Rusoro Mining for alleged breach of its contractual obligations under a consortium agreement to submit a bid for the parent of Citgo Petroleum in a court-organized auction.
A $5.9 billion bid by an affiliate of Elliott Investment Management was recommended as the auction’s winner in August, beating Gold Reserve’s $7.9 billion bid. Both offers included an agreement with Rusoro to use its $1.5 billion claim related to expropriated assets in Venezuela as part of the bids.
“Gold Reserve is seeking preliminary injunctive relief to enjoin Rusoro from participating in the sale process during the pendency of the action, among other forms of relief,” the miner said in a release.
(Reporting by Marianna Parraga; Editing by Nathan Crooks)