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TSX Trading Symbol: GBU
TORONTO, March 29 /CNW/ - Gabriel Resources Ltd. ("Gabriel" or the "Company") (TSX - "GBU") is pleased to announce that the syndicate of underwriters for the recently completed public offering have exercised their over-allotment option (the "Option") to purchase an additional 3,750,000 common shares of the Company at a price of $4.35 per share, for aggregate gross proceeds of Cdn $16,312,500. As previously indicated, Newmont Canada Limited, a subsidiary of Newmont Mining Corporation, has elected to exercise its right to participate in up to 20% of the Option, which will result in the issuance of a further 937,500 common shares of the Company, for aggregate gross proceeds of Cdn $4,078,125.
The syndicate of underwriters that closed the public offering of common shares of the Company at a price of $4.35 per share on March 22, 2007 (the "Offering") was comprised of RBC Capital Markets and Sprott Securities Inc. as joint bookrunners, and included BMO Nesbitt Burns Inc., Canaccord Capital Corporation, Merrill Lynch Canada Inc., Orion Securities Inc., Paradigm Capital Inc. and Raymond James Ltd..
"We anticipate that this completes the equity financing we need to advance our Rosia Montana project," said Alan R. Hill, President and CEO. "We are pleased with the results of this offering and the strong signal it sends regarding the strength of our Company."
Gross proceeds from the exercise of the Option, together with the gross proceeds from the Offering, total $156,328,125. Gabriel intends to use the total net proceeds to advance the development of the Rosia Montana gold deposit in Romania, including completing the acquisition of surface rights, advancing detailed engineering, ordering long lead-time equipment and commencing construction of the new village of Piatra Alba.
The common shares being issued pursuant to the exercise of the Option 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.
About Gabriel
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.