09:03 AM EDT, 09/30/2024 (MT Newswires) -- Gold Reserve Inc. ( GDRZF ) , which saw its shares drop more than 40% and nearer to 52 week lows last Friday, on Monday provided an update on the sale and bidding process for the purchase of the common shares of PDV Holdings, Inc., the indirect parent company of CITGO Petroleum Corp., managed by the Special Master appointed by the U.S. District Court for the District of Delaware.

Today's statement noted that on October 1, 2024, the Delaware Court is scheduled to hold a hearing on the Alter Ego Motion and on the Bolivarian Republic of Venezuela/PDVSA motion for a four-month stay of the sale process.

"At present, it is not clear what, if any, monies the company would receive under the terms of this Proposed Purchase Agreement, and there is a significant risk the company would not receive any recovery," said Paul Rivett, Executive Vice Chair, in the statement.

"All of the proposed terms appear to be contingent on the resolution of the Alter Ego Motion, as well as subject to further amendment if the motion is granted and, unfortunately, many of the terms are redacted. Gold Reserve's ( GDRZF ) recovery appears to be entirely contingent on the amount of the purchase price that is escrowed to resolve the CITGO Holding Pledge (related to the 2020 Notes), and the resolution of the pending litigation concerning the CITGO Holding Pledge as well as the Ascertained Alter Ego Claims. Gold Reserve ( GDRZF ) looks forward to obtaining further clarity on these open issues. In the interim, Gold Reserve ( GDRZF ) is considering all of its options, including in respect of its objection rights and preparations for the topping period."

GRZ last Friday lost $1.53 or 42.15% to close at $2.10, compared to a 52 week low of $1.97.