HOUSTON, Nov 10 (Reuters) - Toronto-listed miner Gold
Reserve ( GDRZF ) said on Monday it filed a complaint in a
Delaware court against Rusoro Mining ( RMLFF ) for alleged breach
of its contractual obligations under a consortium agreement to
submit a bid for the parent of U.S. refiner 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 ( GDRZF ) $7.9 billion bid. The process aims to
auction Venezuela-owned PDV Holding to compensate up to 15
creditors for expropriations and debt defaults in Venezuela.
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. Delaware Judge Leonard Stark has not made a
decision on the auction's winner amid objections and challenges
to the bidding process.
"Gold Reserve ( GDRZF ) 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.
Gold Reserve's ( GDRZF ) complaint was filed under seal in the Court
of Chancery of Delaware. The company and parties representing
Venezuela last month filed motions to disqualify the judge and
court advisors over alleged conflict of interest, which remain
pending.
Lawyers representing Rusoro did not immediately reply to a
request for comment, but they informed the Delaware court over
the weekend about Gold Reserve's ( GDRZF ) complaint and said the company
was reviewing the documents while reserving its rights to take
any actions.
Gold Reserve ( GDRZF ) is seeking "to prevent Rusoro Mining ( RMLFF ) from
taking steps to close on impending purchase of the shares of PDV
Holding," Rusoro told the court.