Gold Reserve to raise $50.3 mln as it targets Venezuela re-entry

Feb 11 (Reuters) - Gold Reserve GRZ.V said on Wednesday it has hired brokerage Cantor Fitzgerald's Canadian arm to raise up to $50.3 million through a private placement of common shares, as it intends to rebuild its investor base and return to operations in Venezuela.

The company operated the Brisas gold mine in the South American country, until the government seized control of the property in 2009.

With Maduro ousted by the U.S. last month, the company expects his successor, Acting President Delcy Rodriguez, to reopen the country for business.

"Gold Reserve intends to return to Venezuela as soon as we are able to do so in a safe and legally compliant manner, in order to re-establish connectivity, re-evaluate conditions in-country and, eventually, resume a critical minerals business," said CEO Paul Rivett.

The company plans to sell the shares at an issue price of $3 apiece in the private placement. It has also allowed the Cantor Fitzgerald unit to issue an additional 25% of the total number of shares at its discretion, it said.

If the over-allotment is exercised in full, Gold Reserve expects to raise about $63 million in gross proceeds from the sale.

The company plans to use net proceeds from the private placement to expand its operational mining expertise, and support working capital needs and general corporate purposes, Gold Reserve said.

Last month, the company agreed to pay around $5 million in commitment fees to banks tied to a loan facility used to bid for shares of PDV Holdings, as part of its efforts to recover assets in Venezuela.

It also flagged that it is reviewing and updating its security plans to support potential negotiations for a safe return to operations in the South American country.

The closing of the offering is expected to occur on or about February 26.