CUPERTINO, Calif., Jan. 6 /PRNewswire-FirstCall/ -- The government of Venezuela has confirmed that the operations of Bolivar Gold Corp. (TSX: BGC; BGC.TO) in that country are far more secure than the company's management and board have claimed, Scion Capital, LLC announced today.
The Dow Jones bureau in Caracas reported today that Mining Minister Victor Alvarez stated that Venezuela has completed 75% of the review of mining operations in the country and will provide an initial report this month.
"The mining review has left many foreign companies awaiting final word before continuing their planned operations, but a few companies have received operating permits in recent weeks," Dow Jones reported. "The minister noted that those companies that received permits, including Canada's Gold Reserve Inc. (GRZ) and Bolivar Gold Corp. (BGC.T), are examples of viable projects that are in tune with the state's new mining policies."
Dow Jones further quoted the Mining Minister as saying: "All those who follow the country's laws have nothing to worry about."
In defending the undervalued $3.00 per share offer for Bolivar from Gold Fields Limited , Bolivar's management has repeatedly cited alleged risk to operations in Venezuela.
"Today's reporting of the Mining Minister's comments confirms what Scion Capital's research had identified long ago. Bolivar Gold received its final exploitation permits for Choco 4 and Choco 10 in early December after gazetting in early November, and it is in good standing with the government. Never has this been more clear for shareholders," said Michael Burry, President of Scion Capital.
"Gold has rallied over the last few months and closed today at $539.95 per ounce, the highest close since 1981," he said. "While, for example, Gold Reserve investors have benefited from a dramatically increased share price driven by higher gold prices and by good news from Venezuela, Bolivar investors' gains have been limited by the Board's rash, conflicted acceptance of the artificially low Gold Fields offer. Shareholders should vote to reject the deal at the special meeting on January 12."
Dr. Burry further stated to Bolivar shareholders that, "Since the plan of arrangement with Gold Fields was announced on November 21st, Bolivar Gold's stock price has essentially traded flat, near Gold Fields' $3.00 offer, while Crystallex has seen its share price rise 40% and Gold Reserve has seen its share price soar 81% over that same period."
About Scion Capital
Based in Cupertino, California, Scion Capital, LLC is an investment advisory firm founded in 2000, with current assets under management in excess US$750 million. Scion Capital seeks to make long-term investments in companies it identifies as having value that has not yet been recognized by the market. It employs a diversified investment strategy across many public and private industries, markets and investment opportunities.
Scion Capital is Bolivar's largest shareholder with holdings of 21,676,400 shares representing approximately 19.14% of Bolivar's outstanding common shares.
Scion Capital's Dissident Circular is available at http://www.sedar.com/ and at http://www.scioncapital.com/.
© 2006 PR Newswire
