OTTAWA _ The chief executive of
Gabriel Resources Ltd. (
TSX: T.GBU,
Stock Forum) says the Romanian government needs to move ahead with a new mining law in the coming months or the company will be forced to do ``something radically different.''
A draft bill that would have allowed the company's controversial Rosia Montana gold project to go ahead was rejected by a Romanian parliamentary commission last week.
The project has faced significant opposition over its planned use of cyanide to extract the gold and silver from the ore, and years of debate on the value the foreign investment and jobs would bring to the country's economy.
However, a report by a special committee of the chamber of deputies and the senate in Romania proposed a broader legal framework for gold and silver mines, such as Rosia Montana.
Gabriel Resources chief executive Jonathan Henry said Tuesday the company's shareholders are running out of patience.
``We need to see that the new generic mining law that has been talked about is making its way through parliament and making its way through parliament on an expeditious basis,'' Henry said in an interview from London.
``It can't be two steps forward and one step back for the next six, nine or 12 months. We need to see Romania making a clear vision for itself to move forward with a modern mining industry.''
He did not say what ``radically different'' would mean, but said the company was looking at all of its options.
``Today, we're being very supportive of the Romanian government in all of their dilemmas and we still spend a significant amount of money in the Romanian economy, but we need to see an expeditious solution that allows us to bring this project forward,'' Henry said.
Gabriel has been waiting for 14 years for permits for Rosia Montana.
In 2009, the company estimated the initial capital cost of the project would total $876 million.
The company, which has spent some $550 million so far, currently estimates it will cost US$1.5 billion to bring the project into production and cash-flow positive.
Rosia Montana has reported resources of 17.1 million ounces of gold and 81.1 million ounces of silver, and is held by Rosia Montana Gold Corp., a Romanian company that is 81 per cent owned by Gabriel.
The stock was down 2.3% to 85 cents Monday, leaving a market cap of $326.5 million, based on 384.1 million shares outstanding. The 52-week range is $2.94 and 41 cents.