TORONTO, ONTARIO--(Marketwire - May 17, 2012) - Gabriel Resources Ltd. ("Gabriel" or the "Company") (GBU.TO - News) is pleased to report that a written judgment released today in respect of a recent ruling of the Alba Iulia Court of Appeal ("AICA") has confirmed that the urbanism plans currently in place for the Rosia Montana Project ("Project") remain legal and valid and have been since their approval in 2002.
Consequently, the Company remains advised that the ruling of the AICA which was issued on April 4, 2012 will have no impact on the Technical Analysis Committee's ("TAC") review of the Environmental Impact Assessment ("EIA") of the Project. Gabriel's subsidiary, Rosia Montana Gold Corporation ("RMGC"), has recently obtained an extension to the validity of its urbanism certificate, UC87/2010, for the period until April 2013, which remains in full force and effect.
This judgment provides the clarity needed to make an informed comment on the ruling of the AICA, as noted in Gabriel's press releases of April 5 and 9 and May 3, 2012. Furthermore, the judgment is contrary to the media-reported conclusions of a legal "audit" of the impact of the AICA ruling requested by the ex-Minister of Environment, Attila Korodi.
Jonathan Henry, President and CEO of Gabriel Resources, stated:
"Today RMGC has valid urbanism documentation confirmed by various courts of law. The TAC process is at an advanced stage and the Company is awaiting a further TAC meeting to be held to discuss the EIA. The Company looks forward to progressing the TAC review, environmental and other permitting for the Project through discussions with the new Romanian Government. This is important for the Company, its shareholders and also for all Romanian stakeholders who will benefit from the Project."
Notes to Editors - Summary Background to the AICA Ruling
Romania manages its land planning through several levels of zoning which include (i) General Urbanism Plans and accompanying local regulations ("PUG") and (ii) Zonal Urbanism Plans and accompanying local regulations ("PUZ"). In 2002, the local council of Rosia Montana passed resolutions approving a PUG and also a PUZ designating an industrial zone under the footprint of the proposed new mine at Rosia Montana (known as an "Industrial Area PUZ").
In early April 2012 the AICA upheld a previous ruling that a 2009 decision by the local council of Rosia Montana to ratify the 2002 approval of the PUG and Industrial Area PUZ was illegally adopted and was invalid. However, the AICA did not rule explicitly that the original 2002 local council decision was invalid. Detailed background to this case and the urbanism plan permitting process is provided in the annex to the press release of Gabriel on April 9, 2012.
Gabriel is a Canadian TSX-listed resource company focused on permitting and developing its world-class Rosia Montana gold and silver project. The Project, the largest undeveloped gold deposit in Europe, is owned through RMGC, a Romanian company in which Gabriel holds an 80.69% stake with the 19.31% balance held by CNCAF Minvest S.A., a Romanian state-owned mining enterprise. Gabriel and RMGC are committed to responsible mining and sustainable development in the communities in which they operate. The Project is anticipated to bring US$19 billion to Romania as potential direct and indirect contribution to GDP according to 2010 estimates from UK-based Oxford Policy Management (using a gold price of US$900/oz). This contribution increases to over US$30 billion at today's gold price. The Project will generate thousands of employment opportunities. Gabriel intends to build a state-of-the-art mine using best available techniques and implementing the highest environmental standards whilst preserving local and national cultural heritage in Romania. For more information please visit the Company's website at www.gabrielresources.com.
This press release contains forward-looking information as defined in applicable securities laws relating to the Company and/or the Project (referred to herein as "forward-looking statements") that are based on management's current expectations, estimates and projections. Specifically, this press release contains forward-looking statements regarding the returns to Romania from the Project and future permitting processes. All statements other than statements of historical facts included herein, including without limitation, those incorporated by reference, those which may refer to the Company's financial position, business strategy, plans, objectives of management for future operations (including development plans and objectives relating to the Company's business) the economic impact, job creation, costs estimates, patrimony plans, future ability of the Company to finance the Project, Project delivery and estimates regarding the timing of completion of various aspects of the Projects' development or of future performance are forward-looking statements.
The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "projects", "may", "will", "schedule", and similar expressions identify forward-looking statements.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies.
Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which are difficult, or may be beyond Gabriel's ability, to predict or control and that may cause the actual outcomes, level of activity, financial results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, These risks, uncertainties and other factors include, without limitation, changes in the worldwide price of precious metals; fluctuations in exchange rates; legislative, political or economic developments including changes to mining and other relevant legislation in Romania; geopolitical uncertainty, uncertain legal enforcement; changes in, and the effects of, the government policies affecting the Company's operations; uncertainties related to timelines for awaited approvals; changes in general economic conditions, and the financial markets; operating or technical difficulties in connection with exploration, development or mining; environmental risks; the risks of diminishing quantities or grades of reserves; and the Company's requirements for substantial additional funding.
Accordingly, readers should not place undue reliance on forward-looking statements. Gabriel undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a result of new information or future events or otherwise, except as may be required by law.