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Gabriel Resources Ltd.: Closing of Private Placement

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Gabriel Resources Ltd.: Closing of Private Placement

 

 

 

 

 

Gabriel Resources Ltd. (TSX:GBU) is pleased to announce that it has completed a closing of its previously announced non-brokered private placement with a number of existing investors. A total of 35,000 units were issued at a price of C$1,000 per Unit to raise aggregate gross proceeds of C$35 million.
 

The Company intends to use the proceeds of the Private Placement for general corporate purposes, including the continuance of its efforts to successfully permit the Rosia Montana gold and silver project in Romania.
 

Each Unit consists of (i) C$1,000 principal amount of convertible subordinated unsecured notes with a coupon of 8% (ii) 398 common share purchase warrants and (iii) one arbitration value right.
 

The Notes will mature on June 30, 2019 and will be convertible at any time prior to maturity, at the option of the holder, into common shares of the Company at a price of CS$1.255 per Share. Interest on the Notes is 8% per annum, payable semi-annually. Each Warrant will entitle the holder to acquire one Share at an exercise price of C$1.674, at any time prior to June 30, 2019. In summary, each Arbitration Value Right will entitle the holder, subject to certain limitations and exclusions, to a pro-rata proportion of up to 5% (capped at C$130 million) of any monies received by the Company and/or any of its affiliates pursuant to any settlement or arbitral awards irrevocably made in its favour if bi-lateral investment treaty proceedings are instituted before June 30, 2019. The Company will retain absolute discretion on whether to institute arbitration proceedings and, if an arbitration filing is made, whether to settle or withdraw such filing, including the terms of any settlement or withdrawal.
 

The Private Placement has been subscribed by certain existing shareholders of the Company. The Notes, the Warrants, the underlying Shares and the Arbitration Value Rights are subject to a 4-month hold period. U.S. investors are subject to applicable resale restrictions. Subject to the foregoing, the securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.
 

About Gabriel
 

Gabriel is a Canadian TSX-listed resource company focused on permitting and developing its world-class Rosia MontanA gold and silver project. The exploitation license for the Project, the largest undeveloped gold deposit in Europe, is held exclusively by Rosia MontanA Gold Corporation, a Romanian company in which Gabriel currently owns an 80.69 percent equity interest, with the 19.31 percent balance held by Minvest Rosia MontanA S.A., a Romanian state-owned mining enterprise. Gabriel and RMGC are committed to responsible mining and sustainable development in the communities in which they operate. The Project is anticipated to bring over US$24 billion (at US$1,200/oz gold) to Romania as potential direct and indirect contribution to GDP. The Project will generate thousands of employment opportunities. Gabriel intends to build a state-of-the-art mine using best available techniques and implementing the highest environmental standards whilst preserving local and national cultural heritage in Romania.

Posted June 4, 2014

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