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TSX Trading Symbol: GBU
TORONTO, March 6 /CNW/ - Gabriel Resources Ltd. ("Gabriel" or the "Company") (TSX - "GBU") is pleased to announce that it has engaged a syndicate of underwriters led by RBC Capital Markets and Sprott Securities as joint book runners for a proposed marketed offering (the "Offering") of common shares ("Shares") of the Company. Aggregate gross proceeds from the Offering are anticipated to be approximately $100,000,000. The underwriters will have an option, exercisable for a period of 30 days from the date of closing, to purchase up to 15% in additional Shares at a price equal to the Offering price to cover over-allotments and for market stabilization purposes.
The Shares will be offered by way of a short form prospectus in all of the provinces of Canada. A preliminary short form prospectus with respect to the Offering has been filed by Gabriel by way of SEDAR with the securities regulatory authority in each of the provinces of Canada.
The Company intends to use the net proceeds of the Offering to finance the development of the Rosia Montana gold deposit in Romania.
Closing of the Offering is subject to certain conditions, including, but not limited to, receipt of all necessary securities regulatory approvals (including the approval of the Toronto Stock Exchange).
The Shares have not been, nor will be, registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement of such Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under the securities laws of any such jurisdiction. Any public offering of securities to be made in the United States would, if made, be made by means of a prospectus that could be obtained from the Company that would contain detailed information about the Company and management as well as financial statements.
Gabriel Resources
Gabriel is a Canadian based resource company committed to responsible mining and sustainable development in the communities in which it operates. Gabriel is currently engaged in the exploration and development of mineral properties in Romania and is presently engaged in the development of its 80% owned Rosia Montana gold project.
Forward-Looking Statements: This press release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the closing of the Offering and the Company's plans with respect to the exploration and development of its projects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.