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Gold Reserve affiliate bids in Citgo parent auction

The company reported on Tuesday that an affiliate of Gold Reserve miner submitted a bid in the top period of the U.S. Court-organized auction for shares of the parent company of Venezuelan-owned U.S. refiner Citgo Petroleum.

According to the Delaware court calendar, after the court selected a $3.7billion offer from an affiliate of Contrarian Funds this year as the starting bid, competitors may submit better bids in the topping period until June 18.

The court officer who was overseeing the sale process last month stated that the resolution of parallel cases pursuing the same assets which are being auctioned off in the 8-year case encouraged new offers without giving details.

In a press release, Gold Reserve said that a consortium of Rusoro Mining, Koch Minerals, and Koch Nitrogen International supported the bid made by Gold Reserve subsidiary Dalinar Energy.

Dalinar Energy could revise their bid before the expiration date of June 18, adding that they have a combination of equity and debt funding and are supported by three major financial institutions in a lending consortium.

The auction results will not be revealed until the judge has disclosed the specifics of the bids.

Documents from the court revealed that, in addition to Contrarian Funds, the Gold Reserve Group, and Vitol, the trading house also participated during the initial bid phase.

Robert Pincus, a court officer, will recommend a winner by the 27th of June. The auction is intended to compensate up 15 creditors who have defaulted on their debts or been expropriated in Venezuela. Reporting by Marianna Pararaga Editing and translation by Margueritachoy

(source: Reuters)