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Expropriated Venezuelan miners approach recovery through auction of Citgo
Gold Reserve's $7.38 Billion Bid Recommended as Winner of Citgo Auction
By Shubham Kalia and Marianna Parraga
Reuters
Thursday, July 3, 2025
A $7.38 billion bid by a unit of Toronto-listed miner Gold Reserve was named preliminary winner of an auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum, organized by a U.S. court to pay creditors for debt defaults and expropriations in the South American country.
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If the offer is approved, proceeds from the auction of PDV Holding would be enough to compensate 11 of the 15 creditors fighting in U.S. courts since 2017 to recover billions of dollars after Venezuela's wave of nationalizations, an officer overseeing the auction said in one of the filings.
Bermuda-based Gold Reserve expects to have its own $1.18 billion claim compensated from the proceeds, following the expropriation of its mining assets in Venezuela. The bid made by its subsidiary Dalinar Energy Corp. will now be evaluated by Delaware Judge Leonard Stark before a final decision.
Dalinar was created by Gold Reserve to participate in the bidding round and take control of Citgo, the crown jewel of Venezuela's overseas assets and the seventh largest U.S. refiner with an 807,000 barrels-per-day network.
Though the cash component of the Gold Reserve-led group's bid seems lower than rival offers, it covers a substantial number of creditors, including oil producer ConocoPhillips, miners Rusoro and Crystallex, and conglomerates Koch, OI Glass, and Siemens Energy.
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