Published on Gold Anti-Trust Action Committee (http://www.gata.org)

Citigroup asks Treasury what to do with $1.1 billion Maduro gold deal

By cpowell
Created 2019-02-21 19:21

By Patricia Laya
Bloomberg News
Thursday, February 21, 2019

Citigroup bankers have been holding talks with U.S. Treasury officials to figure out how to handle a gold deal they had arranged with Nicolas Maduro's regime in Venezuela, people familiar with the matter said.

The deal -- a $1.1 billion swaps contract backed by gold held by the Venezuelan central bank -- was struck before the U.S. stepped up sanctions on Maduro's government. But it's due to expire early next month and Citigroup bankers are seeking to make sure they avoid making a move now that would violate the sanctions, according to Senator Marco Rubio and other U.S. and Venezuelan officials familiar with the matter.

... Dispatch continues below ...


First Vanadium Acquires Strategic Land Position
Extending the Carlin Vanadium Deposit in Nevada

Company Announcement
Thursday, January 31, 2019

VANCOUVER, British Columbia, Canada -- First Vanadium Corp. (TSXV: FVAN, OTCQX: FVANF, FSE: 1PY), formerly Cornerstone Metals Inc., has made a strategic acquisition of the southern extension of the Carlin Vanadium deposit 6 miles south of Carlin, Nevada.

The company has gained mineral rights to an additional 200-meter strike length of the Carlin Vanadium deposit through an access and mineral lease agreement to approximately 80 acres of private (fee simple) land immediately adjacent to the Carlin Vanadium property (called the Cole Creek property). Six vertical holes drilled by Union Carbide in the 1960s on this adjacent ground demonstrated a southern continuance of the Carlin Vanadium deposit with thicknesses ranging from 10.67 meters to 28.96 meters (average 18.54 meters or 60.8 feet) and grades ranging from 0.37 to 0.82 percent vanadium oxide (average 0.57 percent V2O5). ...

... For the remainder of the announcement:

https://www.firstvanadium.com/index.php/news/2019/485- [1]

"The one thing, no banker, global or financial institution is going to do is run the risk of secondary sanctions," Rubio, who's been helping drive the U.S. push to oust Maduro, said in a telephone interview late Wednesday. "The sale of gold is another revenue source that the Maduro regime is using and I know for a fact that Citibank has had multiple meetings with Treasury seeking guidance, trying to figure out how to avoid exposure." ...

The four-year swaps contract -- which handed Venezuela a loan in exchange for putting the gold up as collateral -- matures on March 11. Because the cash-strapped Maduro regime is unlikely to come up with the money it had received in the deal, Citigroup could wind up getting the gold. Allies of Juan Guaido, the legislator who's trying to take power from Maduro with the help of the U.S. and other countries, are lobbying the bank to not take possession of it as part of their effort to safeguard the nation's dwindling assets.

"Citi hasn't responded publicly, but they understand the situation and are willing to collaborate and we're asking them not to execute the guarantee," said Angel Alvarado, who's a member of the National Assembly's finance commission. "We're waiting to see what mechanisms will be used. The strategy is to protect assets."

Under the contract's current terms, if Venezuela does not pay next month, Citi would keep the gold and only pay the central bank the difference in value since the metal's price has increased since it was signed in 2015. In the meantime, the gold would remain inside the Bank of England's vaults, according to one person familiar with the issue.

... For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-02-21/citigroup-huddles-wit... [2]

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org [3]

To contribute to GATA, please visit:

http://www.gata.org/node/16 [4]

Source URL: