TORONTO, CANADA--(Marketwired - Nov. 12, 2013) - Gabriel Resources Ltd. ("Gabriel" or the "Company") (GBU.TO) announces that the report ("Report") of the Joint Special Committee of the Chamber of Deputies and the Senate ("Special Committee") on the draft legislation related to its majority owned Roşia Montană gold and silver project ("Project") and the development of mining activities in Romania ("Draft Law") has been published.
The Company will issue a further market update in due course once it has had the opportunity to consider fully all findings, proposals, conclusions and recommendations of the Report. This notwithstanding, the Company notes that the conclusions of the Report include:
- recognition that the existing mining law is not sufficient to legislate for the scale and complexity of the Project;
- a recommendation for the creation of a new legal framework applicable to gold and silver mining projects and consequently a rejection of the Draft Law;
- a positive assessment of the economic benefits of the proposed amendments to the agreement and legislation promoted by the Romanian Government; and
- a recommendation that ministries and institutions involved in the assessment of the Project examine and, where appropriate, investigate certain issues identified in the hearings and noted in the Report.
The findings of the Report arise from a comprehensive assessment of the Project as part of a complex, detailed and lengthy process analysing and debating issues around the revival of Romania's mining industry as a whole.
The conclusions of the Report do not propose a rejection of the Project by the Romanian Parliament ("Parliament"). The Special Committee recommends the rejection of the legislation initiated by the Government specific to Roşia Montană, and this recommendation is expected to be debated in the Senate of the Parliament, before the Report and the Draft Law are sent to the Chamber of Deputies, as the decision-making body charged with voting on its adoption.
The Special Committee has proposed the creation of a new generic legal framework applicable to gold and silver mining operations such as the Project. Gabriel welcomes any initiative that accelerates the development of an enhanced mining law and a legislative framework that paves the way for a modern and strong mining industry in Romania, with sustainable development at its core. Gabriel has previously shown its full commitment to working closely with the relevant ministries and government bodies to develop the Project, which has the potential to be central to the growth of mining in Romania, and remains committed to any dialogue which leads to the expeditious approval of this world-class and sustainable mining project. The Company will monitor the development of this initiative closely, whilst actively considering all possible opportunities in the interests of its stakeholders.
Jonathan Henry, President and CEO of Gabriel, commented:
"The report of the Special Committee is a first step in defining the next phase of developing Roşia Montană. Gabriel will now assess the impact of the Report and we look forward to participating in the creation of a modern mining industry in Romania. Our goal remains to bring the Project through to a reality that will significantly benefit Romania and the people of Roşia Montană."
Gabriel is a Canadian TSX-listed resource company focused on permitting and developing its world-class Roşia Montană gold and silver project. The exploitation license for the Project, the largest undeveloped gold deposit in Europe, is held exclusively by Roşia Montană Gold Corporation, a Romanian company in which Gabriel currently owns an 80.69 percent equity interest, with the 19.31 percent 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 over US$24 billion (at US$1,200/oz gold) to Romania as potential direct and indirect contribution to GDP. 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 development of a new legal framework for mining in Romania and in respect of 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 Project's 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", "potential", "proposed" 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, legislative, political 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.