LONDON, UK / ACCESSWIRE / March 8, 2024 / Gabriel Resources Ltd. (TSXV:GBU) announces that the World Bank's International Centre for Settlement of Investment Disputes (ICSID) today issued a decision dismissing, by a two to one majority, the Company's arbitration claims filed against the Romanian Government relating to its investments in the Roia Montan gold and silvermining project.
In addition, the Tribunal awarded Romania approximately US$10m in legal fees and expenses incurred in connection with its defence of the arbitration. The award is binding on the parties.
Gabriel initiated the arbitration before ICSID in July 2015 under the Canada-Romania and UK-Romania bilateral investment treaties following the Romanian Government's refusal to act on the permitting of the Roia Montan project.
The Company strongly disagrees with the majority's decision, which is entirely inconsistent with any objective assessment of the evidence presented in this case, as demonstrated by the compelling dissenting opinion of one of the arbitrators.
The Company is analyzing the Tribunal's decision with its legal advisers to evaluate its options, including to challenge the decision through the annulment process prescribed by the ICSID Convention.
Anna El-Erian, Chair of Gabriel Resources said: "We consider the decision of the majority to be deeply flawed. As recognized by the dissenting arbitrator, the Romanian Government's sustained political interference with Gabriel's contractual rights prevented the development of a flagship mining project owned in partnership with the State. We will take time to evaluate our options, but hasten to record our sincere appreciation to our shareholders for their unwavering support and patience throughout this prolonged process. We would also like to express our gratitude to our earnest and hard-working management and team of employees, in Romania and abroad, who have devoted a significant part of their careers to the development of the project in the sincere belief that it was in the country's best interests."
Dragos Tanase, CEO of Gabriel Resources said "Gabriel's shareholders invested hundreds of millions of dollars to deliver a transformational mining project that would have brought very significant social and financial benefits to the Romanian people, not only in Roia Montan but across Romania. We regret that Romania, its economy and its citizens, have missed the opportunity to benefit from this mining project. We will be studying the Tribunal's decision in detail before evaluating our next steps."