Gold Reserve Ltd’s long-anticipated return to Venezuela is still uncertain, despite recent progress in reopening the country’s mining sector.

The Bermudian-based company, which has welcomed proposed changes to Venezuela’s mining laws and taken part in high-level talks with American and Venezuelan officials, said in its latest filing that major legal and financial barriers still stand in the way of its return to the country.

Central to the challenge are American and Canadian sanctions, which restrict dealings with Venezuelan state entities. Gold Reserve’s interest in the Siembra Minera project — its primary vehicle for returning to the country — is tied to a joint venture that is majority-owned by a Venezuelan government partner.

The company said the restrictions “may limit our ability to engage in certain activities” and could also affect the role of directors and executives in those jurisdictions.

Gold Reserve’s filing also stated that its Venezuela strategy is closely linked to a long-running arbitration dispute. The company is owed approximately $1.2 billion, including interest, following the expropriation of its Brisas gold-copper project more than a decade ago.

However, that award is not recognised as a receivable, and collection is “not considered probable” given Venezuela’s payment history, sanctions and broader political and economic uncertainty.

The company added that Venezuela has been “in breach of its payment obligations since 2018”, and Gold Reserve continues to rack up costs to try to enforce the award.

The new filing presents a more cautious backdrop to recent developments that had raised hopes of a breakthrough. Venezuela’s National Assembly has given preliminary approval to a new mining law designed to attract foreign investment, while Gold Reserve representatives joined American officials and other industry figures in talks in Caracas on restarting mining activity.

Those discussions were supported by a limited licence from the United States Treasury’s Office of Foreign Assets Control, allowing companies to explore potential agreements within a defined window.

Gold Reserve has also scored fresh investor backing, raising $75 million earlier this year in an oversubscribed private placement to fund its return to Venezuela.

Even so, the company said any return to operations will depend on a combination of factors, including sanctions relief, regulatory clarity and progress on recovering the arbitration award.

Gold Reserve, which continued to Bermuda in 2024, said it is still committed to pursuing opportunities in Venezuela but said that it will do so only in a “legally compliant manner”.