Having already scrapped a $28-million bought-deal financing, Gabriel Resources (GBU-T) has nixed its back up plan to sell the 10 million shares at $2.80 apiece on a best-efforts basis.
The proceeds from the offering were earmarked for development of the company’s 80% owned Rosia Montana gold project in Romania. RBC Capital Markets was to have managed both financing plans.
Gabriel’s project has faced criticism by the country’s Prime Minister, who has asked his environmental and interior ministers to investigate the project’s environmental impact despite a recently issued parliamentary commission’s report that concluded the mine would benefit Romania if promised standards were maintained.
The commission’s report will be put before the parliament in September.
Gabriel is currently preparing an environmental impact assessment it says is "in accordance with all Romanian requirements, as well as all European and international environmental standards.”
The past few months have not been kind to Gabriel, which has seen four key officers resign, Rosia Montana’s projected costs increase from previous estimates, and its share price wither. The project has long been dogged by several non-governmental organizations that fear the project will hurt the environment.
Since the beginning of the year, Gabriel’s share price has been halved to trade at $2.35 (off 7 from its previous close) in late afternoon trading following the news on July 17.
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