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Gabriel Resources Ltd. - Cdn$108,750,000 Public Offering
Gabriel Resources Ltd. - Cdn$108,750,000 Public Offering.
About this update from Gabriel Resources Ltd.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR\n\n\nDISSEMINATION IN THE UNITED STATES/\n\n\nTSX Trading Symbol: GBU\n\n\nTORONTO, March 9 /CNW/ - Gabriel Resources Ltd. ("Gabriel" or the\n"Company") (TSX - "GBU") is pleased to announce that it has entered into an\nunderwriting agreement with a syndicate of underwriters led by RBC Capital\nMarkets and Sprott Securities Inc. as joint bookrunners, and including BMO\nNesbitt Burns Inc., Canaccord Capital Corporation, Merrill Lynch Canada Inc.,\nOrion Securities Inc., Paradigm Capital Inc. and Raymond James Ltd.\n(collectively the "Underwriters"), to sell a total of 25,000,000 common shares\n(the "Offering") at a price of Cdn$4.35 per share (the "Offering Price") to\nraise gross proceeds of Cdn$108,750,000. Gabriel has granted the Underwriters\nan over-allotment option (the "Option") to purchase up to an additional\n3,750,000 common shares at the Offering Price for a period of thirty (30) days\nafter the closing of the Offering, for additional gross proceeds to Gabriel of\nCdn$16,312,500 to cover over-allotments, if any, and for market stabilization\npurposes.\n\n\nThe common shares (the "Shares") will be offered by way of a short form\nprospectus in all of the provinces of Canada. A preliminary short form\nprospectus with respect to the Offering has been filed by Gabriel by way of\nSEDAR with the securities regulatory authority in each of the provinces of\nCanada. Closing of the Offering is subject to certain conditions, including,\nbut not limited to, receipt of all necessary securities regulatory approvals\n(including the approval of the Toronto Stock Exchange).\n\n\nThe Company intends to use the net proceeds of the Offering to finance\nthe development of the Rosia Montana gold deposit in Romania.\n\n\nNewmont Mining Corporation of Canada Limited ("NMCCL"), a subsidiary of\nNewmont Mining Corporation, has certain participation rights with respect to\nthe Offering pursuant to terms of a subscription agreement between the Company\nand NMCCL dated August 29, 2004 (the "Subscription Agreement"). Under the\nterms of the Subscription Agreement, NMCCL has the right to acquire up to 20%\nof the Offering as well as 20% of the Option. Newmont has a period of five\nb...