Gabriel calls Romanian loss a "travesty," seeks funding
2024-03-11 11:04 ET - News Release
Mr. Dragos Tanase reports
GABRIEL RESOURCES LTD. CORPORATE UPDATE
Gabriel Resources Ltd. announced on March 8, 2024, that the company's ICSID arbitration claims against the Romanian government were dismissed by a 2-to-1 majority and the tribunal awarded Romania approximately $10-million (U.S.) in legal fees and expenses. The award is binding on the parties and the amount payable incurs simple interest from the date of the award at the three-month U.S. Treasury rate.
Gabriel believes the tribunal's decision is deeply flawed and a travesty of justice. This decision blatantly ignores or intentionally misconstrues the vast body of evidence presented to demonstrate that Romania's decision to deny necessary permits was politically motivated and without any substantive or objective regulatory basis.
The company continues to analyze the judgment with its legal advisers to evaluate its options, including to challenge the decision through the annulment process prescribed by the ICSID Convention.
The company currently has available funds of approximately $2.7-million ($2.0-million (U.S.)) and would expect such balance to be exhausted in the normal course of business by May, 2024. Gabriel intends to conduct an immediate review of its current and future financial obligations and the ability to source funds to settle amounts payable. The company will announce its conclusions in due course.
Notwithstanding this review, Gabriel will require further funding during the second quarter of 2024 in order to pursue longer-term activities (which may include, as appropriate, costs of any potential annulment proceedings) and for general working capital purposes. There is a significant risk that sufficient additional financing may not be available to the company on acceptable terms, or at all. The failure to raise funds as and when needed would have a negative impact on the company's financial condition and its ability to continue as a going concern.