11:25 AM EDT, 05/27/2024 (MT Newswires) -- Gold Reserve ( GDRZF ) said Monday it is raising up to US$65 million to fund its potential bid to acquire shares in PDV Holdings, the indirect parent company of CITGO Petroleum.

Gold Reserve ( GDRZF ) launched a US$10 million offering of shares priced at US$3.50 apiece, with closing expected June 7.

The company also granted an overallotment option that would raise the proceeds to US$15 million if fully exercised.

Gold Reserve ( GDRZF ) also entered a binding sheet with Monarch Alternative Capital LP to borrow up to US$50 million. Closing is expected June 5.

The company said there is no assurance that it would lodge a bid or a potential transaction will be consummated. In such case, the company will use the proceeds of the share offering for working capital and general corporate purposes.

"This transaction provides the company with sufficient liquidity to potentially bid, either solely or jointly, to acquire the PDVH shares on June 11 in accordance with the requisite bidding procedures established by the Delaware Court and demonstrates we are taking proactive steps to protect the interests of our shareholders," said Paul Rivett, Gold Reserve's ( GDRZF ) executive vice chairman.

Gold Reserve ( GDRZF ) shares were last seen up C$0.05 to C$4.85 on the TSX Venture Exchange.

Price: 4.85, Change: +0.05, Percent Change: +1.04