Business
Over-allotment option exercised for $20.3 million increasing total gross proceeds to $156.3 million
Over-allotment option exercised for $20.3 million increasing total gross proceeds to $156.3 million.
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 29 /CNW/ - Gabriel Resources Ltd. ("Gabriel" or the\n"Company") (TSX - "GBU") is pleased to announce that the syndicate of\nunderwriters for the recently completed public offering have exercised their\nover-allotment option (the "Option") to purchase an additional 3,750,000\ncommon shares of the Company at a price of $4.35 per share, for aggregate\ngross proceeds of Cdn $16,312,500. As previously indicated, Newmont Canada\nLimited, a subsidiary of Newmont Mining Corporation, has elected to exercise\nits right to participate in up to 20% of the Option, which will result in the\nissuance of a further 937,500 common shares of the Company, for aggregate\ngross proceeds of Cdn $4,078,125.\n\n\nThe syndicate of underwriters that closed the public offering of common\nshares of the Company at a price of $4.35 per share on March 22, 2007 (the\n"Offering") was comprised of RBC Capital Markets and Sprott Securities Inc. as\njoint bookrunners, and included BMO Nesbitt Burns Inc., Canaccord Capital\nCorporation, Merrill Lynch Canada Inc., Orion Securities Inc., Paradigm\nCapital Inc. and Raymond James Ltd..\n\n\n"We anticipate that this completes the equity financing we need to\nadvance our Rosia Montana project," said Alan R. Hill, President and CEO. "We\nare pleased with the results of this offering and the strong signal it sends\nregarding the strength of our Company."\n\n\nGross proceeds from the exercise of the Option, together with the gross\nproceeds from the Offering, total $156,328,125. Gabriel intends to use the\ntotal net proceeds to advance the development of the Rosia Montana gold\ndeposit in Romania, including completing the acquisition of surface rights,\nadvancing detailed engineering, ordering long lead-time equipment and\ncommencing construction of the new village of Piatra Alba.\n\n\nThe common shares being issued pursuant to the exercise of the Option\nhave not been, nor will be, registered under the United States Securities Act\nof 1933, as amended, or any state securities laws and may not be offered or\nsold in the United States absent registration or applicable exemption from the\nregistrati...