Cluff raises cash for Ghanian mine; Gold Reserve in Venezuela

Gold Reserve (NASDAQ) says it is forming a Venezuelan subsidiary, Unicorn Mining, to mine for diamonds and gold.

On behalf of Unicorn, Gold Reserve has purchased a Venezuelan company with mining equipment, several buildings and mining rights to 3,707 acres in a major diamond and gold producing region of Venezuela.

Venezuelan records show that the “Guri El-Merey” mining district has produced more than one million carats of gem quality diamonds, mostly from small-scale rudimentary operations. Gold Reserve plans to use large-scale mining and high-tech recovery methods to increase production.

Through the Caracas Stock Exchange (CSE), which has embarked on a campaign to encourage foreign investment, Gold Reserve hopes to raise $7-9 million by issuing common shares and convertible, redeemable bonds of Unicorn. Unicorn will list on the CSE upon completion of the offering in the first quarter of 1992.

Gold Reserve says Venezuela is encouraging foreign investment and one of its objectives is to become a major mining nation.

“Due to the recent shift in its political and economic climate, Venezuela is one of the most attractive areas in the world to invest,” says Rockne Timm, president of Gold

Reserve.