Gabriel Resources Ltd.

Gabriel Resources Ltd.

September 05, 2013 08:03 ET

Gabriel Resources Ltd.: Rosia Montana Law Sent to Romanian Parliament

TORONTO, CANADA--(Marketwired - Sept. 5, 2013) - Gabriel Resources Ltd. ("Gabriel" or the "Company") (TSX:GBU) is pleased to announce that, further to the approval by the Romanian Government ("Government") of draft legislation ("Draft Law") relating to the Rosia Montana Project ("Project"), the Draft Law has now passed to the Romanian Parliament ("Parliament") for debate. This legislation, if approved, will establish a framework for the re-invigoration of the mining industry across Romania and assist the development of the Project to become one of Europe's most modern mines.

Development of the Project will also provide substantial economic, environmental, cultural and social benefits to the region around the mine and to other parts of Romania, as well as provide solid foundations for the long term sustainable future of the area and its local community which do not exist today.

The Project will:

  • Combat extreme poverty in the Apuseni Mountains through the creation of 2,300 jobs in the construction phase and 900 in the operational phase;
  • Bring over US$24 billion (at US$1,200/oz gold) to Romania as potential direct and indirect contribution to GDP;
  • Clean up centuries of historic pollution and meet or exceed the latest European Union and Romanian laws on environmental protection and guarantees;
  • Restore and protect the heritage of the historic town of Rosia Montana, which currently lies in a state of continuing decay, and create a sustainable cultural legacy for the community.

All those who visit the Project will see for themselves the positive effects of the numerous environmental, cultural and community initiatives already undertaken by the Company. Furthermore the Company looks forward to hosting all visitors to demonstrate that the Project is an achievable solution to remedy the existing high levels of pollution, the continuing degeneration of important heritage and the poverty suffered by many in Rosia Montana. Following over a decade of involvement in the Project, the Company remains committed to the prospect of developing the Project for the benefit of Romania. The Project has been designed using world leading environmental, engineering and mine development experts, with investment to date of over US$550m, and has the capability to act as a showcase to attract further investment into Romania.

The Prime Minister of Romania has announced that a special committee of the Parliament ("Special Committee") will be established in order to channel the debate within Parliament on the merits of the Project. The Company believes the Special Committee should visit the Project and take the opportunity to see in person the significant impact of the initiatives introduced by the Company, as well as hearing from the local people in Rosia Montana (the majority of whom voted in favour of the Project in a December 2012 referendum) their reasons for supporting the Project. Furthermore, the Company would welcome all Members of Parliament who have not already visited the Project to undertake a site visit to understand, at first hand, the significant resources invested to date by the Company and the benefits that the commercial operation of the Project will bring to the community in Rosia Montana and also across Romania.

The Draft Law has now been published in Romanian on the website of the Romanian Senate. As matters progress the Company will update the market accordingly.

Jonathan Henry, Gabriel's President and Chief Executive Officer, stated:

"We look forward to the Romanian Parliament's review of the Rosia Montana Project. The Parliamentary approval and enactment of the Draft Law will enable Gabriel to partner the Romanian State in building Romania's first modern mine which will match or exceed EU and Romanian environmental laws, create substantial direct and indirect employment opportunities, and provide significant cultural, environmental and economic benefits. We send an open invitation to all stakeholders to visit Rosia Montana and see for themselves why the development of the Project is needed and how Romania can benefit should it take the opportunity to become Europe's largest gold producer."

About Gabriel

Gabriel is a Canadian TSX-listed resource company focused on permitting and developing its world-class Rosia Montana gold and silver project. The exploitation license for the Project, the largest undeveloped gold deposit in Europe, is held exclusively by Rosia Montana Gold Corporation ("RMGC"), a Romanian company in which Gabriel currently owns an 80.69 percent equity interest, which will be reduced to 75 percent should the Draft Law be adopted. The current 19.31 percent balance held by CNCAF Minvest S.A., a Romanian state-owned mining enterprise, would increase to 25% should the Draft Law be adopted. Gabriel and RMGC are committed to responsible mining and sustainable development in the communities in which they operate. The Project is anticipated to bring over US$24 billion (at US$1,200/oz gold) to Romania as potential direct and indirect contribution to GDP. The Project will generate thousands of employment opportunities. Gabriel intends to build a state-of-the-art mine using best available techniques and implementing the highest environmental standards whilst preserving local and national cultural heritage in Romania.

For more information please visit the Company's website at

Forward-looking Statements

This press release contains forward-looking information as defined in applicable securities laws relating to the Company and/or the Project (referred to herein as "forward-looking statements") that are based on management's current expectations, estimates and projections. Specifically, this press release contains forward-looking statements regarding the returns to Romania from the Project and in respect of future permitting processes. All statements other than statements of historical facts included herein, including without limitation, those incorporated by reference, those which may refer to the Company's financial position, business strategy, plans, objectives of management for future operations (including development plans and objectives relating to the Company's business) the economic impact, job creation, costs estimates, patrimony plans, future ability of the Company to finance the Project, Project delivery and estimates regarding the timing of completion of various aspects of the Project's development or of future performance are forward-looking statements.

The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "projects", "may", "will", "schedule", "potential", "proposed" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that are inherently subject to significant business, economic, legislative, political and competitive uncertainties and contingencies.

Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which are difficult, or may be beyond Gabriel's ability, to predict or control and that may cause the actual outcomes, level of activity, financial results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, without limitation, changes in the worldwide price of precious metals; fluctuations in exchange rates; legislative, political or economic developments including changes to mining and other relevant legislation in Romania; geopolitical uncertainty, uncertain legal enforcement; changes in, and the effects of, the government policies affecting the Company's operations; uncertainties related to timelines for awaited approvals; changes in general economic conditions, and the financial markets; operating or technical difficulties in connection with exploration, development or mining; environmental risks; the risks of diminishing quantities or grades of reserves; and the Company's requirements for substantial additional funding.

Accordingly, readers should not place undue reliance on forward-looking statements. Gabriel undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a result of new information or future events or otherwise, except as may be required by law.

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