Gabriel Resources Ltd. (TSX:GBU) ("Gabriel" or the "Company") announces the
publication of its Annual Results and Fourth Quarter Management's Discussion and
Analysis Report for the period ended December 31, 2013.
Summary of recent events
Capitalised terms used in this summary section are defined in "Further
Information" below.
-- During 2013, the public profile of the Project rose significantly within
the political and public arenas in Romania following its inclusion in a
national strategic plan of the Government in July and also with the
subsequent introduction of several legislative proposals related to, or
impacting upon, the Project, all of which were widely covered in
television debates, on the internet and in print media.
-- This Parliamentary and legislative action, high profile and related NGO
opposition served to intensify the focus on the actions of Government
and politicians in respect of the Project and, ultimately, no progress
or clarity of process has been forthcoming in Q4 2013 regarding the
Government's review of the environmental permitting for the Project.
-- Whilst, on the whole, 2013 saw a period of increased political stability
in Romania, a renewed sense of political uncertainty has emerged post-
period end with the collapse of the ruling 'USL' Government coalition in
February 2014 and the formation of a new Government alliance in March.
-- On March 5, 2014, a new coalition Government, including UDMR, a
political alliance representing the ethnic Hungarians of Romania, was
sworn in. The UDMR has been allocated certain ministerial and state
secretarial offices, including, of particular relevance to the Project,
the Ministries of Environment and Culture, positions it most recently
held when in Government in 2012. Each new UDMR minister has recently
stated that they do not believe the next steps to the permitting of
Rosia Montana fall under their responsibility.
-- The renewed political instability and recently effected ministerial
changes, together with the failed legislative initiatives of 2013, have
resulted in a lack of transparency in the foreseeable process for
permitting the Project. Until such time as the Company can initiate
additional, meaningful dialogue with the Government regarding the
completion of various permitting processes of the Project including the
EIA, Gabriel cannot provide any assurances or estimates of the likely
time required to address and resolve matters currently preventing the
advancement of the Project.
-- In light of the repeated delays of the Government to properly address
the assessment and permitting of the Project, as of March 1, 2014, RMGC
has initiated legal procedures for the retrenchment of approximately 400
employees, equivalent to approximately 80 per cent of the workforce. If
there is no progress in the advancement of the Project, the affected
contracts may be terminated as of May 1, 2014.
Q4 Summary
-- The Government has made no progress with issuing the decision required
on the environmental permitting of the Project, having deferred it 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.
-- In January 2014, the Suceava Tribunal admitted a request for the
temporary suspension of the ADC for the Carnic open pit which was issued
in July 2011. The ruling is not irrevocable and is the subject of an
appeal by RMGC. The ADC remains valid while suspended.
-- During Q4 2013, the Company increased communications and legal activity
levels in response to the Parliamentary Review. These activities lead to
increased expenditure in the latter part of 2013, with the cash impact
also affecting expenditure in Q1 2014.
-- $42.1 million of cash and cash equivalents was held as at December 31,
2013.
Jonathan Henry, Gabriel's President and Chief Executive Officer, stated:
"Romania has the potential to be a leading gold producer in Europe through the
development of Rosia Montana. This would be Romania's first modern mine, built
to the exacting environmental standards that international companies are used to
operating under in today's world.
We still remain fully committed to constructing and operating a mine at Rosia
Montana but we need to see a similar commitment from Romania. With no
environmental permitting progress forthcoming, and following expenditure in
Romania of $550 million over a fifteen year period, the Company has recently had
to give almost 400 Romanian employees notice of redundancy. All of these jobs
and more will be lost unless we see a real and transparent process from the new
Government in the coming weeks and months to proceed with the Project, which has
the potential to create over 3,600 jobs."
Further information and commentary on the operations and results in the fourth
quarter of 2013 and full financial year, together with events anticipated in the
short term, is given below. The Company has filed its Annual 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 loss for the fourth quarter of 2013 was $0.5 million, and for
the year ended December 31, 2013 was $2.5 million, or $0.01 per share.
Liquidity and Capital Resources
-- Cash and cash equivalents at December 31, 2013 amounted to $42.1
million.
-- During the year ended December 31, 2013 the Company issued 3.5 million
common shares on the exercise of stock options for aggregate gross
proceeds of approximately $5.4 million.
-- Excluding the impact of funds received by the Company through the
exercise of stock options, tax refunds and realized foreign exchange
translation differences, the Company's average monthly net cash usage
throughout 2013 was $3.9 million (2012: $4.9 million; 2011: $5.5
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. During Q4 2013, the
Company increased communications and legal activity levels in response
to the Parliamentary Review (defined below). These activities led to
increased expenditure in the latter part of 2013, with the cash impact
also affecting expenditure in Q1 2014.
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
-- Whilst, on the whole, 2013 saw a period of increased political stability
in Romania, a renewed sense of political uncertainty has emerged with
the collapse of the ruling Romanian Government ("Government") coalition
in early 2014 and the formation of a new Government alliance in March,
as described below.
-- From the parliamentary elections held on December 9, 2012 until late
February 2014, the 'USL" alliance of the Social Democrat ("PSD"),
National Liberal ("PNL"), the Conservative Party ("PC") and the National
Union for the Progress of Romania ("UNPR"), led by Social Democrat
leader and Prime Minister Victor Ponta, held a two-thirds majority in
parliament, a position enabling it to control both the Chamber of
Deputies and the Senate of the Romanian Parliament ("Parliament").
-- On February 25, 2014, the PNL adopted a resolution for its withdrawal
from the Government, and also called for the resignation of Prime
Minister Ponta and the legal dissolution of the USL. Accordingly, the
PNL ministers, state secretaries and other political appointees resigned
from the Government on February 26, 2014. This schism in the coalition
was the culmination of a series of recent disputes between the USL
coalition partners- principally owing to rivalry in the lead up to the
presidential elections, which are to be held in November 2014 and, most
recently, ministerial appointments.
-- On March 3, 2014, it was announced that the PSD, PC and the UNPR, had
reached a political agreement of the terms on which the Democratic Union
of Hungarians in Romania ("UDMR"), a political alliance representing the
ethnic Hungarians of Romania, was to join the Government. This agreement
follows UDMR being in a position of political opposition for almost two
years. Pursuant to such agreement, UDMR has been allocated certain
ministerial and state secretarial offices, including, of particular
relevance to the Project, the Ministries of Environment and Culture,
positions it most recently held when in government in 2012.
-- On March 4, 2014, a vote in both chambers of the Romanian Parliament
approved the composition of the new governing alliance of the PSD, PC,
UNPR and UDMR, and the new Government was sworn in on March 5, 2014. The
new Government will hold approximately 54% of the seats in the Senate
and 62% of the seats in the Chamber of Deputies.
National Plan for Strategic Investment and Job Creation
-- In the first half of 2013 the USL Government added definition to its
strategic agenda for its four-year term, which manifested itself in an
announcement by Prime Minister Ponta on July 11, 2013 of a 'National
Plan for Strategic Investment and Job Creation' ("Strategic Plan").
Seven projects within the Romanian mineral resources sector were
identified in the Strategic Plan, of which one was the Project.
-- Throughout 2013, the Company, through RMGC, sought to engage with the
Government and various ministries on the numerous matters pertaining to
the Project including negotiations relating to a proposed increase of
the State's equity interest in the Project and the royalty rate
applicable to the Project's future gold and silver production, the
Company's long-term commitments on environmental and cultural heritage
initiatives, and the implementation of a defined route to successful
permitting of the Project.
Special Draft Law in respect of the Project
-- In order to achieve certain of the objectives assumed by the Government
through the Strategic Plan, the Government approved and issued 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" ("Special Draft Law") on August 27, 2013, which
was subsequently submitted to the Romanian Parliament for debate
("Parliamentary Review").
-- The Government's announcement of the Special Draft Law and the
associated Parliamentary Review gave rise to significant discourse
within the political and public arenas in Romania. On September 17,
2013, Parliament established a Special Joint Committee of the Senate and
of the Chamber of Deputies ("Special Committee") to analyse the Special
Draft Law. The Special Committee was given an objective of (a) examining
the Special Draft Law, as initiated by the Government together with any
amendments submitted by the Government, deputies and senators; (b)
preparing a report on the Special Draft Law for discussion in each
chamber of the Parliament; and (c) facilitating a decision on the
adoption of the Special Draft Law in a plenary session of each Chamber.
Report of the Special Committee
-- On November 11, 2013 the Special Committee published its report on the
Special Draft Law ("Report"), and voted in favour of a recommendation
for the rejection of the Special Draft Law by seventeen votes "for" and
with two abstentions.
-- Notwithstanding the recommended rejection of the legislation initiated
by the Government specific to Rosia Montana, the conclusions of the
Report also recommended that a general legislative framework be drafted
for the mining industry, and gold and silver mining projects as a whole.
The Report did not propose acceptance or rejection of the Project by the
Parliament.
-- The Special Committee was primarily empowered by the Parliament to
review the Special Draft Law and to issue a recommendation thereon for
further debate in the plenary of the Parliament. However, given the
interest of Romanian society in the Project, 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, as reported in the Company's MD&A for
the third quarter of 2013, including a request that various ministries
and institutions involved in the assessment of the Project examine and,
where appropriate, investigate certain issues identified during the
hearings of the Special Committee.
-- 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, the utilisation of
alternative technologies for gold and silver recover and the safety of
the tailings management facility, have already been addressed
extensively by the competent authorities or institutions charged with
assessing the Project, such as the Technical Assessment Committee of the
Environment Ministry ("TAC").
Rejection of the Special Draft Law
-- On November 19, 2013 the Special Draft Law and Special Committee
recommendation were debated in the plenary of the Senate. The Senate
rejected the Special Draft Law adopting the Report drawn-up by the
Special Commission.
-- The Report and Special Draft Law were subsequently transmitted to the
Chamber of Deputies, as the decision-making body of Parliament charged
with voting on its adoption. No vote has taken place to date although
the Company fully expects the Special Draft Law to be rejected by the
Chamber of Deputies when it is presented.
Further Attempts to Reform the Mining Law
-- In September 2013, the Government commenced a separate legislative
initiative ("Draft Amended Mining Law") in Parliament to amend the
existing mining law, Law No. 85/2003, which was intended to facilitate
the general development of all mining activities across Romania. This
bill was neither specific to the Project nor incorporated any agreement
between the Company or RMGC and the State.
-- It is understood that further analysis and amendment of the original
terms of the Draft Amended Mining Law was undertaken by the Government
in the following months, some of which arose from the Special Committee
review and others arising from consultation with Transparency
International Romania, a non-governmental organization that monitors and
publicises corporate and political anti-corruption initiatives for
international development.
-- On December 2, 2013, the Draft Amended Mining Law was debated and voted
on by the plenary of the Senate where it failed to receive the requisite
majority for its approval despite 85 of the 94 senators present voting
in favour of its approval.
-- On December 10, 2013, the Draft Amended Mining Law was debated and voted
on in the Chamber of Deputies where it again failed to garner the
minimum number of votes required for its adoption - notwithstanding that
a majority of the deputies present voted in favour of its adoption (160
votes in favour, 105 against, 22 abstentions).
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 Rosia Montana ("Minvest RM"), the Romania state
partner in the Project.
-- The political instability and ministerial changes recently effected,
together with the failed legislative initiatives of 2013, have resulted
in a lack of transparency in the foreseeable process for permitting the
Project. Until such time as the Company can initiate additional,
meaningful dialogue with the relevant ministries of the Government
regarding the completion of environmental permitting and any proposals
for further legislative processes through parliament which may affect
the Project, Gabriel cannot provide any assurances or estimates of the
likely time required to address and resolve matters such as those raised
in the Report of the Special Committee or as to the impact of recent
events upon the permitting progress of the Project.
-- In light of the repeated delays of the Government to properly address
the assessment and permitting procedures for the Project, as of March 1,
2014 RMGC has initiated legal procedures for the retrenchment of
approximately 400 employees, equivalent to approximately 80 per cent of
the workforce. The employment contracts of such employees are
temporarily suspended pending consultation regarding retrenchment
compensation. If there is no progress in the advancement of the Project,
the affected contracts will be terminated as of May 1, 2014.
-- Additionally, a thorough review of all activities associated with the
development of the Project is ongoing, with a goal of further reducing
expenditures to ensure the Company remains financially strong, while
maintaining, as far as possible, all existing licenses and permits in
good standing.
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 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.
-- In line with one recommendation of the Special Committee, on November
14, 2013, the Government issued an emergency ordinance to amend the
Fiscal Code and, in particular, to provide for a new set of royalties
applicable to mineral resources to be applied from 2014 upon either (i)
the conclusion of a license or (ii) the issuance of a mining permit
("GEO 102/2013"). For noble metals, including gold, a royalty of 6% of
the mining production value is to be applied under GEO 102/2013. Whilst
the Senate has approved GEO 102/2013, it is now to be debated and voted
on by the Chamber of Deputies, the decisional body, who could
potentially modify the applicable royalty rates. Until such time as an
addendum to the exploitation license for the Project ("RM License") is
agreed by RMGC, it is the Company's understanding that the royalty rate
of 4% established in the RM License will continue to apply to the
Project.
Environmental/Permitting
-- The Company's previous understanding was that only Government approval
of the environmental permit ("EP") was pivotal to the permitting
progress of the Project and furthermore, a key factor in the Government
decision was the recommendation of the TAC, originally charged with the
detailed assessment of the environmental impact and compliance of the
Project. The Company remains confident that it will comply with, and in
certain aspects exceed, its obligations under European Union and
Romanian laws for environmental protection and guarantees.
-- To date the outcome of the Parliamentary Review has been a rejection in
the Senate and debate is yet to be concluded in the Chamber of Deputies,
where the Company expects the Special Draft Law to be rejected. The
Draft Amended Mining Law garnered an insufficient number of supporting
votes to see the legislation carried for its adoption. The outlook
regarding any re-submission to Parliament of legislation related to the
amending the existing mining law is uncertain at this time and, as such,
the Company remains unable to provide guidance on the timeframes to a
final decision on environmental permitting of the Project from the TAC,
Ministry of Environment ("MoE") or the Government. Ultimately, and in
accordance with current legislation, the EP must be approved by a
Cabinet decision of the Government prior to its issuance.
-- The Company's amended industrial zonal urbanism plan ("Industrial Area
PUZ") remains at an advanced stage, and currently there are 19 valid
endorsements of the 23 required for its approval. 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 Q4 2013.
-- 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
-- An archaeological review of the historical mining activity at Rosia
Montana is a critical step in the granting of the construction permits
to build the Project. A number of archaeological discharge certificates
are required for various parts of the proposed Project footprint. In
order to obtain such discharge certificates, the Company has conducted
an extensive program of exploratory and preventative archaeology in
order to ensure that valuable historical relics in the area are
uncovered and preserved.
-- In July 2011, the Alba County Directorate for Culture and National
Patrimony issued a new ADC to RMGC for the Carnic open-pit, which
complemented those it already held for the Cetate and Jig open-pits. In
January 2014, the Suceava Tribunal admitted a request for the temporary
suspension of the ADC for the Carnic open pit. The ruling is not
irrevocable and is being appealed. The ADC remains valid while
suspended.
-- The Company continues to commit resources to preserve the important
archeological areas that it has previously opened and restored. However,
further restoration work has been put on hold until such time as the
Government moves ahead with Project permitting.
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. While a small number of
these actions over many years have been successful, the vast majority
have been, and continue to be, proved to be without merit in the
Romanian courts.
-- 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 ultimately to 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.
-- Key developments that have occurred in legal proceedings concerning the
Project since the end of the third quarter of 2013 and certain upcoming
court hearings in the first quarter of 2014 are as follows:
-- RMGC submitted several applications to the High Court of Cassation
and Justice ("Supreme Court"), and the Cluj Court of Appeal, seeking
the relocation of certain legal claims relating to the Project from
the Cluj Tribunal to alternative forums. These applications were
submitted on the grounds of the association of certain members of
the judiciary of the Cluj Tribunal with opponents of the Project and
that such Tribunal was an unsuitable forum for hearing such claims
given the fervent and negative social and political environment in
the Cluj area vis-a-vis the Project. Pursuant to these applications,
each of the relevant claims have been relocated to alternative
Tribunals, as described further below.
-- On October 25, 2013 a claim initiated by two NGOs seeking the
suspension of the strategic environmental assessment ("SEA")
endorsement for the Industrial Area PUZ was relocated from the Cluj
Tribunal to the Bacau Tribunal. At a hearing on March 12, 2014, RMGC
submitted a motion for the dismissal of the case, a decision on
which is expected on March 14, 2014.
-- On October 31, 2013 an action filed by three NGOs requesting the
suspension of the Archaelogical Discharge Certificate ("ADC") for
the Carnic open-pit was relocated from the Cluj Tribunal to the
Suceava Tribunal. On 30 January 2014, the Suceava Tribunal admitted
the request for the temporary suspension of such ADC. The ruling is
not irrevocable and has been appealed by RMGC, which it currently
anticipates will be heard by a Court of Appeal in the coming months.
-- 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 Buzau Tribunal, and the next hearing
of that claim is scheduled for March 18, 2014.
-- On November 6, 2013 a claim initiated by two NGOs seeking the
cancellation of the SEA endorsement was relocated from the Cluj
Tribunal to the Covasna Tribunal, and the next hearing date for this
claim has been scheduled for March 14, 2014.
-- On February 14, 2014 a claim registered by three NGOs seeking the
cancellation of UC-47 was relocated to the Bistrita Tribunal. The
first hearing date of this claim before the Bistrita Tribunal has
been scheduled for March 14, 2014.
-- 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 RM 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.
-- 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.
Other Legal Proceedings
-- On November 12, 2013, RMGC initiated a defamation suit against the
former director general of the Romanian Institute of Geology (IGR), Mr.
Stefan Marincea, 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. No
hearing date has yet been scheduled for this claim.
-- In November 2013, RMGC was informed of an investigation by the Ploiesti
Public Prosecutor's Office ("PPPO") into alleged tax evasion and money
laundering on the part of the principals/key shareholder(s) of a group
of companies including Kadok Interprest LLC ("Kadok Group"). The PPPO
has extended its investigation of the Kadok Group to at least 100 other
companies, including RMGC, that had entered into commercial business
relationships with the Kadok Group. RMGC is challenging the legality of
a restriction order on $0.3 million held in one of RMGC's Romanian bank
accounts pending the outcome of the investigation. The restricted amount
represents the value of the goods procured by RMGC from the Kadok Group
during 2012, all of which were received and paid for in full by RMGC,
including related sales tax. RMGC no longer has any business
relationship with Kadok Group. RMGC is continuing to provide evidence to
the PPPO of its legitimate business dealings with the Kadok Group, as
well as cooperating fully with the PPPO.
Outlook
-- The Company's key objectives in the short term include to:
-- Engagement with the new Government;
-- 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;
-- Understand and progress to finalization and completion the measures
required to obtain approval of the EP;
-- Continue appropriate stewardship of cash resources; and
-- Maximize shareholder value, while optimizing benefits of the Project
to 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 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.
For more information please visit the Company's website at www.gabrielresources.com.
Forward-looking Statements
This press release contains "forward-looking information" (also referred to as
"forward-looking statements") within the meaning of applicable Canadian
securities legislation. Forward-looking statements are provided for the purpose
of providing information about management's current expectations and plans and
allowing investors and others to get a better understanding of Gabriel's
operating environment.
These forward-looking statements may include statements with respect to the
future financial or operating performance of the Company and its subsidiaries,
the perceived merit of properties, exploration results and budgets, mineral
reserves and mineral resources estimates, work programs, capital expenditures,
operating costs, cash flow estimates, production estimates and similar
statements relating to the economic viability of a project, timelines, strategic
plans, including the Company's plans and expectations relating to the Project,
the anticipated outcomes of the application processes for permits, endorsements
and licenses, including but not limited to the ongoing review of the
environmental impact assessment, required for the Project, or other statements
that are not statements of fact.
Any statements that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions or future
events or performance (often, but not always, identified by words or phrases
such as "expects", "is expected", "anticipates", "believes", "plans",
"projects", "estimates", "assumes", "intends", "strategy", "goals",
"objectives", "potential", "possible" or variations thereof or stating that
certain actions, events, conditions or results "may", "could", "would",
"should", "might" or "will" be taken, occur or be achieved, or the negative of
any of these terms and similar expressions) are not statements of fact and may
be forward-looking statements.
Forward-looking statements are based upon certain assumptions and other
important factors regarding present and future business strategies and the
environment in which the Company will operate in the future, which could prove
to be significantly incorrect.
Forward-looking statements are inherently subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of the Company and/or its subsidiaries to
be materially different from those expressed or implied by such forward-looking
statements. These risks, uncertainties and other factors include, without
limitation, the political and economic risks of operating in Romania, including
those related to controls, regulations, political or economic developments and
government instability in Romania; uncertainty of estimates of capital costs,
sustaining capital costs, operating costs, production and economic returns;
permitting risks, including the risk that permits and governmental approvals
necessary to develop and operate the Project will not be available on a timely
basis or at all, risks of maintaining the validity and enforceability of
necessary permits and risks of replacing expired/cancelled permits and
approvals; uncertainties relating to the assumptions underlying the Company's
mineral resource and mineral reserve estimates, such as metal pricing,
metallurgy, mineability, marketability and operating and capital costs; risk
related to the acquisition of all necessary surface rights for the development
of the Project, including the risk that the Company may not acquire all such
rights, or acquire such rights at acceptable prices; risks related to the
Company's ability to commence production and generate material revenues or
obtain adequate financing for its planned exploration and development
activities; risks of defective title to mineral property, including the risk of
successful legal challenges to the validity of the Company's exploitation
license; risks related to the Company's ability to finance the development of
the Project through external financing, strategic alliances, or otherwise;
litigation risks, including the uncertainties inherent in current and future
legal challenges relating to the Project;
risks related to the availability of infrastructure, water, energy and other
inputs; uncertainty inherent in litigation including the effects of discovery of
new evidence or advancement of new legal theories, the difficulty of predicting
decisions of judges and the possibility that decisions may be reversed on
appeal; uncertainties relating to prices for energy inputs, labour, material
costs, supplies and services (including, but not limited to, labour, cement,
steel, capital equipment, reagents and fuel); risks related to changes in law
and regulatory requirements, including environmental regulation; risks related
to the subjectivity of estimating mineral resources and mineral reserves and the
reliance on available data and assumptions and judgments used in interpretation
of such data; risks related to currency fluctuations, particularly in the value
of the United States dollar and/or the Canadian dollar relative to each other
and to the Euro and the Romanian leu; risks related to the future market prices
of gold and silver and other mineral and commodity price fluctuations, and
volatility in metal prices; risks related to the need for reclamation activities
on the Company's properties and uncertainty of cost estimates related thereto;
risks associated with maintaining substantial levels of indebtedness, including
potential financial constraints on operations; dependence on cooperation of
state-owned joint venture partner in the development of the Project; risks
related to the loss of key employees and the Company's ability to attract and
retain qualified management and technical personnel; risks related to market
events and volatility of global and local economic climate; taxation, including
change in tax laws and interpretations of tax laws; mining and development
risks, including risks related to infrastructure, accidents, equipment
breakdowns, labour disputes or other unanticipated difficulties with or
interruptions in development, construction or production; risks related to
opposition to the Project from non-governmental organizations or civil society;
share capital dilution and share price volatility; and increased competition in
the mining industry.
Forward-looking information contained herein is made as of the date of this
press release. There can be no assurance that forward-looking information or
statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information or statements.
Accordingly, for the reasons set forth above, readers should not place undue
reliance on forward-looking statements. The Company does not undertake to update
any forward-looking statements, except in accordance with applicable securities
laws.
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
Empire Metals (TSXV:EP)
Historical Stock Chart
From Dec 2024 to Jan 2025
Empire Metals (TSXV:EP)
Historical Stock Chart
From Jan 2024 to Jan 2025
