TSX-V-listed gold junior Rusoro confirmed on Tuesday that a portion of the initial $100-million payment from Venezuela in terms of the October settlement agreement had been sent, but said that its Canadian bank refused to advance the funds.
The bank is reportedly concerned about US sanctions and the impact of facilitating the payment to Rusoro will have on its US subsidiary.
Rusoro said that it was working with the international banking community to find a process of enabling the receipt of the $100-million payment in the near future.
In October, the company announced the signing of a settlement agreement in which Venezuela agreed to pay Rusoro more than $1.28-billion for full release of the arbitral award issued in favour of the company in August 2016.
Rusoro pursued international arbitration against Venezuela, after the South American nation’s government expropriated its assets without compensation in 2011.
The former foes have also agreed to consider a partnership to restart the Choco 10 and San Rafael-El Placer operations. Rusoro and Venezuela will constitute a mixed commission to evaluate the status of the projects and to determine if the parties should proceed with a joint venture.