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Gabriel Resources Ltd. (TSX:GBU) released its financial statements for Q3, as well as its MD&A report. The company is currently embroiled in a dispute about its Rosia Montana gold-silver project with the Romanian government.

Gabriel Resources Ltd. (TSX:GBU) released its financial statements for Q3, as well as its MD&A report. The company is currently embroiled in a dispute about its Rosia Montana gold-silver project with the Romanian government.
The company states in its release:

  • Romania has blocked and prevented implementation of the Roşia Montană gold and silver project (“Project”) without due process and without compensation. As a consequence, in July 2015, the Company was left with no alternative but to file a request for arbitration against Romania before the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) to protect its rights in relation to the Project under applicable treaties for the promotion and protection of foreign investment to which Romania is a party (“Request for Arbitration”).
  • On July 30, 2015, ICSID registered Gabriel’s Request for Arbitration and the current phase in the arbitration proceedings is to constitute the tribunal that will adjudicate the claim.
  • Despite the initiation of arbitration proceedings, the Company remains open to engagement with the President, the Prime Minister and the Government of Romania (“Romanian Authorities”) to achieve an amicable resolution of the dispute. No such engagement has occurred in the year to date.
  • Following the resignation of the Prime Minister on November 4, 2015 an interim Government administration is in place.
  • After taking into account, amongst other matters, the continued failure of the competent authorities to address the assessment procedures of the Project, the protracted and uncertain nature of the judicial process and the requirement for the Company to reduce its cost base, Gabriel has determined, and Roşia Montană Gold Corporation (“RMGC”) has resolved, to withdraw from a number of pending Romanian litigation cases.
  • Gabriel held $25.7 million of cash and cash equivalents as at September 30, 2015

Jonathan Henry, president and CEO of Gabriel Resources, commented:

We are hugely disappointed that there remains no engagement with the Romanian Authorities despite formal notification of this dispute almost ten months ago. Gabriel has been given no alternative but to pursue the avenue of international arbitration in order to protect its rights. Although the arbitration process is now underway, we have always been committed to the construction and operation of a world class gold mine at Roşia Montană and our overriding wish remains that an amicable resolution can be reached.

Click here to read the full Gabriel Resources Ltd. (TSX:GBU) press release.

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