Business
Gabriel Resources Ltd.: 2015 Annual Results, Fourth Quarter Report and Proposed Private Placement
TORONTO, CANADA--(Marketwired - March 29, 2016) - Gabriel Resources Ltd. ("Gabriel" or the "Company") (TSX:GBU) announces the publication of its Annual Results
About this update from Gabriel Resources Ltd.
[{"type":"text","content":"TORONTO, CANADA--(Marketwired - March 29, 2016) - Gabriel Resources Ltd. (\"Gabriel\" or the \"Company\") (TSX:GBU) announces the publication of its Annual Results and Fourth Quarter Management's Discussion and Analysis Report for the period ended December 31, 2015, together with a proposed private placement to raise up to $20 million, subject to the approval of securityholders and the Toronto Stock Exchange (\"TSX\"). Summary Romania continues to block and prevent implementation of the Rosia Montana gold and silver project (\"Project\") without due process and without compensation. The Company is progressing with an 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\"). The arbitral tribunal that will hear the case is currently being constituted. Despite the Company's expressed preference to engage in discussions to seek an amicable resolution of the dispute, the Romanian authorities have failed to respond to the Company's offer to do so. The Company has signed subscription agreements with a number of existing investors (the \"Subscribers\") pursuant to which the Company intends to raise up to $20 million by way of a non-brokered private placement (the \"Private Placement\"). In addition, the Company intends to enter into arrangements with certain existing securityholders to amend certain terms of the securities held by such holders (the \"Restructuring\"). The Private Placement and Restructuring are together referred to in this announcement as the \"Transactions\", the terms of which are detailed in further information below. The completion of the Transactions is subject to securityholder and regulatory approval, as applicable. Proceeds from the Private Placement will be used for the ICSID Arbitration and for general working capital requirements. As at December 31, 2015, the Company recorded a non-cash write-down of $631.2 million relating to all mineral property and a material proportion of its property, plant and equipment (the \"Impairment\"). The Company held $18.6 million of cash and cash equivalents as at December 31, 2015. Jonathan Henry, Gabriel's President and Chief Executive Officer, stated: \"There remains no eng...