Gabriel Resources Ltd. (TSX:GBU) ("Gabriel" or the "Company") announces the
publication of its Third Quarter Financial Statements and Management's
Discussion and Analysis Report for the period ended September 30, 2013.
Summary of Recent Events
Capitalised terms used in this summary section are defined in "Further
Information" below
-- On September 17, 2013, Parliament established a Special Joint Committee
of the Senate and of the Chamber of Deputies with an objective to (a)
examine the Draft Law initiated by the Government, as well as any
amendments submitted by the Government, deputies and senators; (b)
prepare a report for discussion in each Chamber; and (c) facilitate a
decision on the adoption of the Draft Law in a plenary session of each
Chamber.
-- On November 11, 2013 the Special Committee issued its report on the
Draft Law which will be submitted to the Senate of the Parliament for
debate and an advisory vote before it is passed to the Chamber of
Deputies for a final binding vote of Parliament. The Special Committee
considered it necessary to undertake a wide debate and analysis of the
Project and, accordingly, issued numerous conclusions and
recommendations in the Report, which are summarized in "Further
Information" below.
-- The conclusions of the Report do not propose a rejection of the Project
by the Parliament but the creation of a new general legal framework
applicable to gold and silver mining projects in order to stimulate the
implementation of such projects and attract investment. However the
Special Committee voted in favour of a recommendation for the rejection
of the Draft Law.
-- The Company notes the Special Committee's proposal for the creation of a
new generic legal framework applicable to gold and silver mining
operations such as the Project, an initiative to address the recognised
deficiencies in the current legal framework for the evaluation and
development of large-scale mining operations such as the Project. The
Company will monitor the development of this initiative closely, whilst
actively considering all possible opportunities in the interests of its
stakeholders.
-- A number of the recommendations presented by the Special Committee have
already been addressed extensively by the competent authorities or
institutions charged with assessing the Project, such as the Technical
Analysis Committee, however the Company is fully committed to working
with the relevant ministries and Government institutions, as
appropriate, to clarify issues raised in the Report.
-- RMGC has initiated a defamation suit in response to completely
ungrounded accusations made before the Special Committee concerning the
falsification of certain maps relating to the Corna Valley basin and
will examine all possible legal action to counter such unfounded
allegations and protect its rights.
-- Whilst some of the conclusions and recommendations of the Special
Committee may be positive for the development of the Project, certain
conclusions and recommendations, if acted upon, may cause unspecified
delay in the permitting process and/or necessitate changes to the terms
of the License and/or the existing joint venture arrangements between
Gabriel and Minvest RM.
-- Until such time as the Company can complete the extensive dialogue
necessary with the relevant ministries of the Government regarding the
ultimate outcome of the Parliamentary Review, Gabriel cannot provide any
assurances or estimates of the likely time required to address and
resolve such matters or as to the impact of such resolution on the
permitting progress of the Project.
Q3 Summary
-- The Government has deferred the decision on the environmental permitting
of the Project until after the conclusion of the Parliamentary Review
and the recommendation of the Ministry of Environment. The Company is
unable to provide guidance on the related timeframes to a final decision
from the TAC, MoE or the Government. Ultimately, the EP must be approved
by a Cabinet decision of the Government prior to its issuance.
-- Visits to Rosia Montana included delegations from the Ministry of
Culture and from the Romanian Parliamentary Commission for UNESCO. After
this visit the reported view of the Minister of Culture was that the
Project had no chance to be included in the UNESCO heritage list at this
time, and the chances will be higher in future years if the old
galleries are preserved and the old buildings are restored, as is the
intention of the Company should the Project proceed.
-- During Q3 2013, the Company continued, at its own cost, with programmes
for the maintenance of 160 houses, and the complete restoration of more
than 110 houses, located within the historical center of the village of
Rosia Montana ("Protected Area"), as well as continuing further detailed
archaeological work focusing on opening up previously unexplored old
underground mining galleries. Subject to internal fit out, the primary
restoration of the former town hall was completed during 2012.
-- On July 18, 2013, a refund of RON 13.4 million ($4.0 million equivalent)
was received from the Romanian fiscal authorities in respect of taxes,
penalties and interest previously paid.
-- $56.2 million of cash and cash equivalents was held as at September 30,
2013.
Jonathan Henry, Gabriel's President and Chief Executive Officer, stated:
"The inclusion of the Project within Romania's National Plan for Strategic
Investment and Job Creation and the Parliamentary Review has shown that the
Government is serious about economic growth for Romania. Gabriel will now assess
the impact of the Report and the Government's revised strategy on initiating and
implementing a new framework legislation for gold and silver mining."
Further information and commentary on the operations and results in the third
quarter of 2013, together with events anticipated in the short term, is given
below. The Company has filed its Unaudited Condensed Interim Consolidated
Financial Statements and Management's Discussion & Analysis on SEDAR at
www.sedar.com and each is available for review on the Company's website at
www.gabrielresources.com.
Further Information
Financial Performance
-- The net profit for the third quarter of 2013 was $2.1 million.
Liquidity and Capital Resources
-- Cash and cash equivalents at September 30, 2013 amounted to $56.2
million.
-- During Q3 2013, the Company issued 0.1 million common shares upon the
exercise of Deferred Share Units, with nil proceeds. No stock options
were exercised.
-- Excluding realized foreign exchange translation differences and the July
2013 tax refund, the Company's average monthly net cash usage during Q3
2013 was $3.5 million (Q2 2013: $3.2 million).
-- During 2013 the Company has continued with its underlying cost
containment, following implementation of cost reduction measures
initiated in mid-2012, to preserve capital until such time as the
Government moves ahead with Project permitting. However, increased
activity levels associated with permitting and communications activities
following the announced Parliamentary Review during the latter part of
Q3 2013 are expected to continue to increase cash usage throughout Q4
2013.
Capital Cost
-- Including interest, financing and corporate costs, the Company estimates
the capital required to bring the Project into production and to a
position of positive cash flow is approximately US$1.5 billion.
Political Environment
-- On December 9, 2012, scheduled parliamentary elections brought an
overwhelming victory for the 'USL' alliance of the Social Democrat,
National Liberal and Conservative parties, led by Social Democrat leader
Victor Ponta. The USL gained two thirds of the parliamentary seats - a
position facilitating majority control in both chambers (the 'Senate'
and the 'Chamber of Deputies') of the Parliament of Romania
("Parliament").
-- The first half of 2013 saw the USL add definition to its program for its
4-year governmental term, which manifested itself in an announcement by
Mr. Ponta on July 11, 2013 of a National Plan for Strategic Investment
and Job Creation (the "Plan"). In the Plan, Mr. Ponta set out key
targets for 2013, including investment commitments into Romania of EUR10
billion and the creation of over 50,000 jobs in five strategic
investment fields. Seven projects within the mineral resources field
have been identified for focus by the Government in order to achieve
those targets, of which one is the Project.
-- In its meeting on August 27, 2013, the Government approved a draft law
"on certain measures related to the exploitation of the gold-silver
deposits from Rosia Montana and stimulation and facilitation of mining
development in Romania" (the "Draft Law") for debate and adoption by
Parliament.
-- On September 5, 2013, the Draft Law was formally presented to Parliament
for consideration by both the Senate and Chamber of Deputies (the
"Parliamentary Review"). On September 17, 2013, Parliament established a
Special Joint Committee of the Senate and of the Chamber of Deputies
(the "Special Committee"). The Special Committee was given an objective
to (a) examine the Draft Law initiated by the Government, as well as any
amendments submitted by the Government, deputies and senators by no
later than October 1, 2013; (b) prepare a report for discussion in each
chamber; and (c) facilitate a decision on the adoption of the Draft Law
in a plenary session of each Chamber.
-- The findings, conclusions and proposals of the Special Committee were
due to be submitted to the plenary of the Senate by October 20, 2013;
this deadline was subsequently amended to November 10, 2013.
Report of the Special Committee
-- On November 11, 2013 the Special Committee published its report on the
Draft Law (the "Report"), and voted in favour of a recommendation for
the rejection of the Draft Law by seventeen votes "for" and with two
abstentions. This recommendation is now expected to be debated in the
Senate of the Parliament, before the Report and the Draft Law are sent
to the Chamber of Deputies, as the decision-making body charged with
voting on its adoption.
-- Notwithstanding the foregoing, the conclusions of the Report do not
propose a rejection of the Project by the Parliament.
-- The Special Committee considered it necessary to undertake a wider
debate and analysis of the Project and, accordingly, issued numerous and
wide-ranging conclusions and recommendations in the Report, including
amongst others, the following:
-- a recommendation that Parliament creates a new general legal
framework applicable to gold and silver mining projects in order to
stimulate the implementation of such projects and attract
investment, acknowledging that the existing mining law is not
sufficient to legislate for the scale and complexity of the Project.
-- an acknowledgement that the development of a stable and predictable
royalty regime for natural resources' projects must be a priority of
economic policy-making in Romania.
-- recognition of the improvements to the economic benefits that the
Project is forecast to provide to the Romanian State, as promoted by
the Government through the Draft Law, compared to those which the
Romanian State enjoys under the terms of the existing exploitation
license for the Project ("License").
-- recommendations that any future agreement should include enhanced
protections for the State regarding, amongst other matters, extended
shareholder veto rights, increased assurances of revenue returns
from the Project's operations and financial guarantees.
-- a recommendation for the declassification and disclosure of the
License.
-- a recommendation that the competent authorities should analyze and,
where appropriate, investigate the evolution of the joint venture
arrangements between the Company and Minvest, including the initial
tender and transfer processes of the late 1990s through which Rosia
Montana Gold Corporation ("RMGC") ultimately acquired the License
and the Company acquired its current indirect equity interest in
RMGC, and the process through which the License has been amended
since its issuance in December 1998.
-- a recommendation that the competent authorities should analyze and,
where appropriate, investigate the statements made before the
Committee by the former director general of the Romanian Institute
of Geology, Mr. Stefan Marincea, with regard to the alleged
falsification of the maps for the Corna Valley basin (see below).
-- a recommendation that specific ministries verify certain statements
made by interested parties during the Committee hearings related to
the potential risks associated with (i) the use of cyanide in mining
operations, including an assessment of the possibility of using the
alternative technology of cyanidation through flotation (ii) dam
safety and (iii) permeability of the Project's Tailings Management
Facility ("TMF").
-- a recommendation that the Parliament examines the opportunity to
amend the legislation, so as to avoid the use of exploitation
technologies in the mining industry that could compromise the
possibility to exploit other commercially valuable mineral
resources.
-- a recommendation that the Ministry of Culture organizes a public
consultation in order to present a competent point of view regarding
the potential dangers which may occur in relation to the cultural
and historical heritage in Rosia Montana and initiates a public
debate on the eligibility of Rosia Montana for inclusion on the
UNESCO Heritage list.
-- The Company notes the Special Committee's proposal for the creation of a
new generic legal framework applicable to gold and silver mining
operations such as the Project, an initiative to address the recognised
deficiencies in the current legal framework for the evaluation and
development of large-scale mining operations such as the Project. The
Company will monitor the development of this initiative closely, whilst
actively considering all possible opportunities in the interests of its
stakeholders.
-- A number of the recommendations presented by the Special Committee in
response to concerns raised by interested parties during the Special
Committee hearings, particularly relating to the preservation of
cultural heritage, the risks of cyanide use and alternative
technologies, and the safety of the TMF, have already been addressed
extensively by the competent authorities or institutions charged with
assessing the Project, such as the Technical Analysis Committee.
-- The Company is fully committed to working with the relevant ministries
and Government institutions, as appropriate, to clarify the above issues
and others raised in the Report. Gabriel, together with is advisers, has
already commenced the process of addressing a number of the Report's
conclusions and recommendations.
-- RMGC has initiated a defamation suit against the former director general
of the Romanian Institute of Geology (IGR), Mr. Stefan Marincea, on
November 12, 2013 in response to the completely ungrounded accusations
made by Mr. Marincea before the Special Committee concerning the
falsification of certain maps relating to the Corna Valley basin. The
Company, through RMGC, will examine all possible legal action to counter
such unfounded allegations and protect its rights.
Impact on the Project
-- Whilst some of the conclusions and recommendations of the Special
Committee may be positive for the development of the Project, certain
conclusions and recommendations, if acted upon, may cause unspecified
delay in the permitting process and/or necessitate changes to the terms
of the License and/or the existing joint venture arrangements between
Gabriel and Minvest RM.
-- Until such time as the Report and Draft Law are sent to the Chamber of
Deputies and the Company can complete the extensive dialogue necessary
with the relevant ministries of the Government regarding the ultimate
outcome of the Parliamentary Review, the Company cannot provide any
assurances or estimates of the likely time required to address and
resolve such matters or as to the impact of such resolution on the
permitting progress of the Project.
Project Ownership and Royalty Rates
-- In accordance with the terms of a reorganization of Minvest's business
approved by the Government on April 30, 2013, Minvest transferred its
entire direct 19.31% shareholding in RMGC to Minvest Rosia Montana S.A.
("Minvest RM"), a wholly-owned state entity. On November 1, 2013 the
shareholders of RMGC formally approved the transfer of the shareholding
in RMGC from Minvest to Minvest RM.
-- The Company announced on July 12, 2013 that it was in negotiations with
the Government on an increase in the Romanian State's equity interest in
the Project and royalties, along with other long-term commitments on
environment, cultural heritage and a defined route to successful
permitting to underpin the Project's status as a world-class, long-term
and sustainable investment. The measures proposed by the Draft Law, as
announced by the Government, included a detailed agreement between RMGC
and the Government cover those issues and the following terms:
-- the transfer by the Company, upon obtaining certain milestones in
the permitting process, of 5.69% of the share capital of RMGC to the
Romanian State, such that its indirect interests will increase to
25%, with the Company retaining a 75% ownership; and
-- an increase in the mining royalty applicable to the Project from 4%
to 6% of revenues.
-- As noted above, the Report includes, amongst others, acknowledgements
that the development of a stable and predictable royalty-regime for
natural resources' projects must be a priority of economic policy-making
in Romania and that the economic benefits to the Romanian State are
improved compared to those which it enjoys under the terms of the
existing exploitation license for the Project.
-- On November 14, 2013 it was reported that an emergency ordinance had
been approved by the Government to set new royalties for mineral
resources, to be applied from 2014 upon either (i) the conclusion of a
license or (ii) the issuance of a mining permit. For noble metals,
including gold, it is reported that a royalty of 6% of the mining
production value will be applied. Until such time as the ordinance is
recognized in the Official Gazette in Romania and an addendum to the
License is agreed by RMGC, it is the Company's understanding that the
royalty rate of 4% established in the License will continue to apply to
the Project.
Environmental/Permitting
-- The Company's understanding remains that Government approval of the
environmental permit ("EP") is pivotal to the permitting progress of the
Project. Furthermore, a key factor in the Government decision is the
recommendation of the Technical Assessment Committee ("TAC"), originally
charged with the detailed review of the environmental impact assessment
("EIA") and compliance of the Project; the TAC having met most recently
on four occasions in May, June and July 2013. The Company remains
confident that it will comply with, and in some aspects exceed, its
obligations under European and Romanian laws for environmental
protection and guarantees.
-- Through its decision of August 27, 2013, the Government deferred the
substantive in-principle decision affecting the environmental permitting
of the Project until after the conclusion of the Parliamentary Review
and the recommendation of the Ministry of Environment. Whilst the
Company awaits the outcome of the Parliamentary Review, it will seek
engagement with the Government on its strategy for addressing the
findings of the Special Committee and the initiative to create a new
legislative framework for gold and silver mining projects. The Company
will also request confirmation from the relevant authorities of the
status of, amongst other matters, the environmental permitting procedure
for the Project.
-- At this time the Company remains unable to provide guidance on the
related timeframes to a final decision from the TAC, MoE or the
Government. Ultimately, the EP must be approved by a Cabinet decision of
the Government prior to its issuance.
-- The Company has instigated a number of environmental initiatives in
recent years to show how the implementation of the Project can assist
with cleaning up legacy local environmental degradation from historical,
unregulated mining activities. One such initiative is an acid rock
drainage pilot test work program to clean mine water contaminated with
high levels of heavy metals and total dissolved solids above EU and
Romanian water standards. These tests have been conducted on water
courses in Rosia Montana that are currently adversely affected by
existing acid mine drainage from historic mining activities. The results
have successfully shown that a full scale plant will clean up water
discharges from the Project, along with much of the existing baseline
contamination in the area, to levels fully compliant with all
regulations in place (and even to potable water standards).
-- Since late 2012, the Company has been working with the requisite
Government agency to use the pilot plant for additional testing of eight
former state-run mine sites and has demonstrated that a full scale water
treatment plant would be successful in cleaning up the contaminants to
the required EU and Romanian standards at all sites tested. This is one
example of how the Project, and the commitments made in the EIA, will
produce long-term environmental benefits at local, regional and national
levels.
-- The Company's amended industrial zonal urbanism plan ("Industrial Area
PUZ") is at an advanced stage, and currently there are 19 valid
endorsements of the 23 required for its approval; the Company has
submitted the necessary documentation for two further endorsements and
is progressing with the submission of documents for the remaining two.
After obtaining all the necessary endorsements, the final approval for
the Industrial Area PUZ will be given by the local councils of Rosia
Montana, Abrud and Bucium.
-- In addition, 10 out of the total of 13 endorsements necessary for the
final approval of the zonal urbanism plan for the Rosia Montana
historical protected area ("Historical Area PUZ") had been obtained at
the end of Q3 2013, with the remainder being a documentary work in
progress.
-- While the Company understands there is no formal link between the
receipt of remaining endorsements for the Industrial Area PUZ, the
Historical Area PUZ and the EIA review process, it believes that these
respective remaining endorsements are likely to be obtained on, or
after, the issuance of the EP.
Archaeology and Preservation of Cultural Heritage
-- The Company continues, at its own cost, with maintenance work on 160
houses identified in the historical center of the village of Rosia
Montana ("Protected Area"), with the aim of preventing their
deterioration. While these village houses are not designated as
historic, the restoration will contribute to maintaining the character
of the village.
-- The Company is advancing a project to complete restoration of more than
110 houses located within the Protected Area, which will bring these
back into functional use. To date, the design work and permitting has
been completed, with the final stage for obtaining construction
authorization yet to be initiated.
-- RMGC, in partnership with the local council of Rosia Montana, initiated
the restoration of two iconic buildings in the Protected Area which will
be used for tourism initiatives. Subject to internal fit out, the
primary restoration of the former town hall was completed during 2012.
Work on the old school house advanced to the stage of the building being
secure and weather tight. Further restoration work has been put on hold
until such time as the Government moves ahead with Project permitting.
-- RMGC is continuing further detailed archaeological work focusing on
opening up previously unexplored old underground mining galleries that
lie under the Protected Area, such as Catalina Monulesti. Such areas
will serve as a permanent museum, a visible testimony to the 2,000 year
mining history at Rosia Montana and an accessible example of historic
mining activities for parties with interests in the regional mining
sector. The Company has already hosted over one thousand visitors to
Catalina Monulesti, representing various stakeholder groups. The
archaeological results identify Roman mining galleries and related
wooden artifacts, all outside of the Project footprint. This is all part
of the long term initiatives in the Protected Area funded solely by the
Company. Without such programs, there would be no comparable
preservation of the area's mining heritage.
-- During Q3 2013, visits to Rosia Montana included delegations from the
Ministry of Culture and from the Romanian Parliamentary Commission for
UNESCO. After this visit the reported view of the Minister of Culture
was that the Project had no chance to be included in the UNESCO heritage
list at this time, and the chances will be higher in future years if the
old galleries are preserved and the old buildings are restored, as is
the intention of the Company should the Project proceed.
Corporate and Social Responsibility (CSR)
-- The Company continues to pursue a strategy of engagement with all
stakeholders to explain the critical importance of the Project as part
of the sustained economic development for Romania and its commitment to
adhere to the highest standards on engineering, environmental, cultural
and social matters, which will allow the Project to become a showcase
for further investment into Romania and a sustainable legacy for the
Romanian people.
-- Gabriel takes pride in its commitment to achieving the highest levels of
sustainability from workplace safety to community and environmental
responsibility. The Company invests significant resources into its CSR
programs, which in Romania is a multi-dimensional commitment managed by
RMGC covering employee training and safety, local communities, living
traditions, direct and indirect social impacts, educational programs,
environmental protection, community sponsorship and heritage aspects.
-- One of RMGC's core commitments is to develop local employment, local
supply and a strategy for local economic diversification during the life
of the Project for sustainable development for the benefit of future
generations, evidenced through:
-- Local employment - RMGC currently employs approximately 500 people
directly and numerous others indirectly, with some 85 percent hired
from the local community. The Company is investing in training and
skills assessments for the construction phase of the Project; and
-- Local supply - more than 600 local firms are suppliers / contractors
to RMGC.
Litigation
-- Over the years, certain foreign and domestically-funded non-governmental
organizations ("NGOs") have initiated a multitude of legal challenges
against licenses, permits, authorizations and approvals obtained for the
exploration and development of the Project.
-- The publicly stated objective of the NGOs in initiating and maintaining
these legal challenges is to use the Romanian court system not only to
delay as much as possible, but to ultimately stop the development of the
Project. Often an action will be taken by the NGOs on a particular issue
in several different regional court jurisdictions, and such legal
objection may be raised in separate cases seeking a suspension or
cancellation of a particular license, permit or approval.
-- There were no significant legal developments during the third quarter of
2013, save that on September 9, 2013 the Bucharest Tribunal dismissed a
claim brought by two NGOs which sought the cancellation and suspension
of the ADC for the Carnic open pit. This decision may be appealed by the
NGOs.
-- The High Court of Cassation and Justice ("Supreme Court") has admitted
applications submitted by RMGC seeking the relocation from the Cluj
Tribunal of four separate legal claims relating to the Project, namely
those seeking the suspension and cancellation of the strategic
environmental assessment ("SEA") endorsement for the Industrial Area PUZ
and the suspension and cancellation of the ADC for the Carnic open-pit.
These applications were submitted on the grounds of the association of
certain members of the Cluj Tribunal with opponents of the Project. All
four claims described below will now be heard by alternative Tribunals,
with hearing dates yet to be determined:
-- On October 31, 2013 the action filed by three NGOs requesting the
suspension of the ADC for the Carnic open-pit was relocated from the
Cluj Tribunal to the Suceava Tribunal.
-- On November 5, 2013 a claim brought by the same three NGOs seeking
the cancellation of the ADC for the Carnic open-pit was relocated
from the Cluj Tribunal to the Calarasi Tribunal.
-- On October 25, 2013 a claim initiated by two NGOs seeking the
suspension of the SEA was relocated from the Cluj Tribunal to the
Bacau Tribunal.
-- On November 6, 2013 a claim initiated by two NGOs seeking the
cancellation of the SEA was relocated from the Cluj Tribunal to the
Covasna Tribunal.
-- As previously reported, on April 1, 2013 the Bucharest Tribunal rejected
a claim brought by an NGO which sought the disclosure of certain
documents pertaining to the Rosia Montana exploitation license. On
October 2, 2013, the complainant NGO submitted an appeal against this
decision to the Bucharest Court of Appeal and the first appeal hearing
has been scheduled for April 25, 2014.
-- The most recent urbanism certificate, UC-47, was issued on April 22,
2013. All four of the urbanism certificates which preceded UC-47 were
the subject of legal action by NGOs, and, on August 14, 2013, three NGOs
initiated proceedings before the Cluj Tribunal seeking the cancellation
of UC-47. The date of the first hearing of this action has yet to be
fixed and the location of the hearing, as in the cases noted above, may
be challenged.
-- Due to the inherent uncertainties of the judicial process, the Company
is unable to predict the ultimate outcome or impact, if any, with
respect to matters challenged in the Romanian courts. In all
circumstances, the Company and/or RMGC will vigorously maintain its
legal rights and will continue to work with local, county and federal
authorities to ensure the Project receives a fair and timely evaluation
in accordance with Romanian and EU laws. However, there can be no
assurance that any claims will be resolved in favor of the Company, RMGC
or the Project. The implications of a negative court ruling will only be
known once such a decision is issued formally by the relevant Court and
the position of the Government is assessed, and may have a material
adverse effect on the timing and/or outcome of the permitting process
for the Project and the Company's financial condition.
Outlook
-- The Company's key objectives in the short term include to:
-- Consider fully the implications of the findings and recommendations
of the Special Committee and, where appropriate, assist in the
process to positive conclusion of issues raised;
-- Maintain ongoing engagement with the Government during the
Parliamentary Review process;
-- Continue to highlight the key economic, environmental, social and
cultural benefits brought to Romania by the Project in order to
highlight the merits of the Project to all stakeholders;
-- Obtain approval of the EP;
-- Continue appropriate stewardship of cash resources;
-- Maximize shareholder value, while optimizing benefits of the Project
for all stakeholders.
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 CNCAF Minvest 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.
For more information please visit the Company's website at www.gabrielresources.com.
Forward-looking Statements
This press release contains forward-looking information as defined in applicable
securities laws relating to the Company and/or the Project (referred to herein
as "forward-looking statements") that are based on management's current
expectations, estimates and projections. Specifically, this press release
contains forward-looking statements regarding the development of a new legal
framework for mining in Romania, returns to Romania from the Project and in
respect of future permitting processes. All statements other than statements of
historical facts included herein, including without limitation, those
incorporated by reference, those which may refer to the Company's financial
position, business strategy, plans, objectives of management for future
operations (including development plans and objectives relating to the Company's
business) the economic impact, job creation, costs estimates, patrimony plans,
future ability of the Company to finance the Project, Project delivery and
estimates regarding the timing of completion of various aspects of the Project's
development or of future performance are forward-looking statements.
The words "believe", "expect", "anticipate", "contemplate", "target", "plan",
"intends", "continue", "budget", "estimate", "projects", "may", "will",
"schedule", "potential", "proposed" and similar expressions identify
forward-looking statements. Forward-looking statements are necessarily based
upon a number of estimates and assumptions that are inherently subject to
significant business, economic, legislative, political and competitive
uncertainties and contingencies.
Forward-looking statements are not guarantees of future performance and are
subject to known and unknown risks, uncertainties and other factors which are
difficult, or may be beyond Gabriel's ability, to predict or control and that
may cause the actual outcomes, level of activity, financial results, performance
or achievements to differ materially from those expressed or implied by the
forward-looking statements. These risks, uncertainties and other factors
include, without limitation, changes in the worldwide price of precious metals;
fluctuations in exchange rates; legislative, political or economic developments
including changes to mining and other relevant legislation in Romania;
geopolitical uncertainty, uncertain legal enforcement; changes in, and the
effects of, the government policies affecting the Company's operations;
uncertainties related to timelines for awaited approvals; changes in general
economic conditions, and the financial markets; operating or technical
difficulties in connection with exploration, development or mining;
environmental risks; the risks of diminishing quantities or grades of reserves;
and the Company's requirements for substantial additional funding.
Accordingly, readers should not place undue reliance on forward-looking
statements. Gabriel undertakes no obligation to update publicly or otherwise
revise any forward-looking statements contained herein whether as a result of
new information or future events or otherwise, except as may be required by law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Jonathan Henry
President and Chief Executive Officer
Mobile: +44 7798 801783
jh@gabrielresources.com
Max Vaughan
Chief Financial Officer
Mobile: +44 7823 885503
max.vaughan@gabrielresources.com
Bobby Morse
Buchanan
Mobile: +44 7802 875227
bobbym@buchanan.uk.com
Katie Fedorowicz
Investor Relations
Mobile: +44 7810 437059
katherine.fedorowicz@gabrielresources.com
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