Rusoro will seek more Venezuelan assets despite rejection by Gold Reserve

VANCOUVER - Rusoro Mining Ltd. (TSXV:RML) said Thursday it'll seek opportunities to expand in Venezuela despite a rejection of its takeover bid by Gold Reserve Inc. (TSX:GRZ).

Vancouver-based Rusoro confirmed Thursday it had tried to purchase Gold Reserve - an offer its target said was worth two Rusoro shares for each share of Gold Reserve and therefore "inadequate."

The offer, which expiredTuesday, was part of Rusoro's "normal course of business to further pursue other gold mining opportunities in Venezuela by offering fair value to Gold Reserve and its shareholders," the company said.

A merger of the two companies, it argued, could potentially help transition Gold Reserve's Brisas gold deposit to development.

Gold Reserve holds the rights to the Brisas gold-copper project and the Choco 5 gold exploration property in Bolivar State, Venezuela.

Spokane, Wash.-based Gold Reserve said Wednesday it was rejecting the unsolicited offer, saying it valued the company at $90 million, which was too low.

But it said it was "always willing" to discuss any potential opportunities to increase shareholder value.

Rusoro, meanwhile, said it will continue to pursue consolidation opportunities.

Rusoro shares traded up two cents, or 2.5 per cent, at 82 cents on the TSX Venture Exchange Thursday, while Gold Reserve rose more than seven per cent, 11 cents, at $1.62 on the TSX.