Gabriel Resources Ltd.

Gabriel Resources Ltd.

November 11, 2009 10:13 ET

Gabriel Enters Into Private Placement With Strategic Mining Investor-Who Has Significant Business Interests in Romania

TORONTO, ONTARIO--(Marketwire - Nov. 11, 2009) -


Gabriel Resources Ltd., (TSX:GBU) ("Gabriel" or "the Company") is pleased to announce that it has entered into a subscription agreement for a private placement of 30 million Units with BSG Capital Markets PCC Limited, which is part of the Beny Steinmetz Group ("BSG"). The Units consist of one common share and one common share purchase warrant entitling BSG to purchase one additional common share of Gabriel at $2.50 per share for 18 months rising to $3.00 per share for the final six months of the two year warrant. The subscription price is $2.25 per Unit for proceeds of $67.5 million. The private placement is scheduled to close on or before December 23, 2009, subject to TSX approvals.

"We are delighted to welcome another major shareholder to our Company, particularly of the caliber of the Beny Steinmetz Group which has proven expertise in the mining industry and project development across the globe and operations in the Balkans. BSG has also made significant business investments in Romania," said Michael Parrett, Chairman of the Board of Gabriel. "As one of Romania's most successful foreign investors with extensive involvement in areas of mining, construction and project development, BSG can provide Gabriel with strong support towards advancing the ultimate development of the Rosia Montana Project."

"The Gabriel team is gratified by the fact that BSG shares the vision of building Rosia Montana into a world-class project with the highest standards for environmental responsibility, sustainable development, patrimony preservation and community involvement," said Keith Hulley, Gabriel's President and Chief Executive Officer. "We are looking forward to working with the BSG team to achieve these important goals."

About BSG

BSG is a privately owned holding company which has business interests across the globe in natural resources, real estate, capital markets and the diamond industries. BSG's mining arm, BSG Resources ("BSGR") operates successfully in Africa and Eastern Europe and includes Ferro-Nickel operations in neighboring Macedonia and Kosovo which have the capacity to produce 30,000 tons per annum making the operation the largest producer of Ferro-Nickel in Europe. BSG's fully owned subsidiary, BSG Resources is also involved in mining diamonds, copper/cobalt, iron ore, bauxite and the production/exploration of oil and gas.

"We at BSG/BSGR have extensive experience in developing world class mining assets around the world. Gabriel is the first material investment made by BSGR into gold and we look forward to working together with the Gabriel team to develop Rosia Montana which we believe to be a world class reserve" said Mr. Dag Cramer, CEO of BSG Capital Markets.

Upon completion of this private placement, it is anticipated that BSG would own approximately 9% of Gabriel's issued and outstanding common shares. Similarly, it is anticipated that the Company's three other major shareholders, Electrum Strategic Holdings LLC, Paulson & Co. Inc. and Newmont Mining Corporation would own approximately 18%, 18% and 15% of Gabriel, respectively after the transaction. If BSG exercises all of its common share purchase warrants then it is anticipated that their ownership interest in Gabriel would increase to 16% and consequently the ownership position of our three other major shareholders would decrease to approximately 17%, 17% and 14% respectively of Gabriel's issued and outstanding common shares. BSG has advised Gabriel that it has subscribed for the Units for investment purposes but it reserves the right to increase or decrease its interest in Gabriel as market circumstances may dictate.

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 80.23% owned Rosia Montana Project, one of the largest undeveloped gold projects in the world. For more information please visit the Company's website at

For further information regarding the private placement, please contact Richard Young, Vice President and Chief Financial Officer at 416 682-6080.

Forward-Looking Statements: Certain statements included in this press release, including the expected percentage interest of the significant shareholders of the Company after giving effect to the Private Placement, and other statements that express management's expectations or estimates regarding the timing of completion of various aspects of this financing by Gabriel, constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. The words "anticipate", "intends", "may", "will", "scheduled", and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. In particular, the press release includes many such forward-looking statements and such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Gabriel to be materially different from its estimated future results, performance or achievements expressed or implied by those forward-looking statements and its forward-looking statements are not guarantees of future performance. While Gabriel may elect to, Gabriel is under no obligation to and does not undertake to update this information at any particular time, except as required by law.

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