Gabriel’s Romanian woes

Having already scrapped a $28-million bought-deal financing, Gabriel Resources (GBU-T) has nixed its backup plan to sell the 10 million shares at $2.80 apiece on a best-efforts basis.

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 environmental and interior ministers to investigate the project’s environmental impact despite the revelation that an ongoing parliamentary commission’s investigation is concluding that the mine would benefit Romania if promised standards were maintained.

Gabriel is preparing an environmental impact assessment it says is “in accordance with all Romanian requirements, as well as all European and international environmental standards.”