Gabriel Resources says share surge not tied to Romania mine arbitration

Gabriel Resources (TSXV: GBU) said on Friday that the recent surge in its share price is unrelated to the outcome of its upcoming arbitration process with the International Centre for Settlement of Investment Disputes (ICSID).

In July 2015, the Canadian resource company initiated an arbitration process before the ICSID after the Romanian government blocked the development of its flagship Roșia Montană gold-silver project.

Located in a historical mining district dating back to pre-Roman times, the Roșia Montană project represents one of the largest undeveloped gold deposits in Europe. It has a mineral reserve base totalling 10.1 million oz. of gold and 47.6 million oz. of silver, contained within 215 million tonnes at average grades of 1.46 grams gold per tonne and 6.88 grams  silver.

The proposed open-pit project was met with widespread protests in 2013, forcing the Romanian government to reject its permit. Revival of the project appeared to be more difficult after Roșia Montană became a UNESCO World Heritage list, recognized for the ancient mine sites’ archaeological value. 

Gabriel has been working on this project since 1997. After obtaining its licence in June 1999, the company said it has focused essentially all of its management and financial resources on the exploration, feasibility and subsequent development of the proposed mine.

Gabriel said it has fulfilled its legal obligations and demonstrated Roşia Montană as a high-quality, sustainable and environmentally responsible mining project, yet Romanian authorities still “unlawfully” blocked the project without compensation, prompting the company to proceed with international arbitration.

The ICSID arbitration tribunal closed the case in September 2023, and per regulations, must issue its final decision to the parties within 120 days, which is before March 12, 2024.

Gabriel Resources closed Friday’s session 11.7% higher at 57¢ per share, having reached a 52-week high of 60¢ earlier. Its market capitalization ended at $590.5 million.