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TORONTO, ONTARIO--(Marketwire
- June 11, 2009) -
NOT FOR RELEASE IN THE UNITED STATES OR OVER U.S. NEWSWIRE SERVICES
Gabriel Resources Ltd. ("Gabriel" or the "Company")
(TSX:GBU) is pleased to announce the closing of its previously
announced private placement (the "Private Placement") and
public offering (the "Public Offering") for aggregate gross
proceeds to the Company of approximately $117 million. Pursuant to the
Public Offering, the Company sold 29,785,000 common shares, which
includes the exercise in full of the over-allotment option, at $2.25
per common share to a syndicate of underwriters led by Cormark Securities Inc. and RBC Capital Markets, as
joint bookrunners, and including Canaccord Capital Corporation (collectively, the
"Underwriters"), for aggregate gross proceeds of $67,016,250.
All dollar amounts are in Canadian dollars.
Pursuant to the Private Placement, each of Electrum Strategic Holdings
LLC ("Electrum") and Paulson & Co. Inc. ("Paulson"),
two of Gabriel's significant shareholders, purchased, 10,601,239 and
11,420,000 common shares respectively, at a price of $2.25 per common
share, for aggregate gross proceeds of $49,547,787. After giving effect
to the transactions contemplated herein, each of Electrum and Paulson
have increased their percentage ownerships to 19.99% of the issued and outstanding
common shares of the Company.
The Company plans to use the net proceeds of the Public Offering and
the Private Placement towards developing the Company's 80% owned Rosia Montana
gold project.
According to information provided by Electrum, the common shares
acquired by Electrum referred to above were acquired from Gabriel and
were acquired for investment purposes, and Electrum and/or one or more
of its affiliates may, depending on market and other conditions,
increase or decrease its beneficial ownership of common shares or other
securities of Gabriel whether in the open market, by privately
negotiated agreement or otherwise.
The Common Shares have not been, will not be, registered under the
United States 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 by 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, by 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 the Rosia
Montana gold project. For more information please visit Gabriel's
website at www.gabrielresources.com.
Electrum Strategic Holdings LLC is located at 1370 Avenue of the Americas, 19th Floor, New
York, New York 10019.
Forward-Looking Statements: Certain statements included in this press
release, including the anticipated use of the net proceeds of the
financing constitute "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act
of 1995 and Canadian securities legislation. The words
"believe", "expect", "anticipate",
"contemplate", "target", "plan",
"intends", "continue", "budget",
"estimate", "may", "will",
"schedule", 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. These risks, uncertainties and other factors include, but
are not limited to: general business, economic, competitive, political
and social uncertainties, fluctuations in the value of the United
States dollar and the Canadian dollar relative to the Romanian RON,
changes to the costs of inputs (including but not limited to labour,
cement, steel and fuel), and delays in obtaining or the inability to
obtain governmental approvals or financing. 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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