Business
2016 Second Quarter Report
LONDON, ENGLAND / ACCESSWIRE / July 29, 2016 / Gabriel Resources Ltd. ("Gabriel" or the "Com...
About this update from Gabriel Resources Ltd.
[{"type":"text","content":"2016 Second Quarter ReportLONDON, ENGLAND / ACCESSWIRE / July 29, 2016 / Gabriel Resources Ltd. (\"Gabriel\" or the \"Company\")(TSX: GBU) announces the publication of its Second Quarter Financial Statements and Management's Discussion and Analysis Report for the period ended June 30, 2016.\n\nSummary \n\n Q2 2016 brought no change in Romania's continued prevention of the implementation of the Roşia Montană gold and silver project (\"Project\"). Accordingly, the Company is progressing with its arbitration case against Romania before the World Bank's International Centre for Settlement of Investment Disputes (\"ICSID\") under applicable treaties for the promotion and protection of foreign investment to which Romania is a party (\"ICSID Arbitration\"). \n The ICSID Arbitration is the core focus of the Company and the arbitral tribunal (\"Tribunal\") that will adjudicate the case was constituted on June 21. The first session of the Tribunal with all parties is scheduled to be held on August 12, 2016.\n As at June 30, 2016, the Company held $28.0 million of cash and cash equivalents. \n On July 14, 2016, the Company completed the previously announced non-brokered private placement financing to raise $40.625 million (\"Private Placement\"). The proceeds from the Private Placement will be used for the ICSID Arbitration and for general working capital requirements. \n Mr. David Kay has been appointed to the Board of the Company with effect from July 29, 2016 as a nominee of Tenor International & Commercial Arbitration Fund (\"Tenor\"), associated with the principal investor in the Private Placement. \n On July 14, 2016 the Company reported that the fiscal authorities in Romania had levied a value added tax assessment (\"VAT Assessment\") on its subsidiary Roșia Montană Gold Corporation S.A. (\"RMGC\") amounting to approximately RON 27 million (approximately $8.6 million) and that RMGC has been subjected to a number of investigations by various Romanian government agencies which Gabriel considers are abusive in scope and execution and were initiated by the Romanian State in reaction to the ICSID Arbitration and recent successful funding initiatives of the Company. \n\nJonathan Henry, Gabriel's President and Chief Executive Officer, stated:\n\"The failure of Romania to allow the development of a world clas...