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Gabriel Resources Ltd (2)
Symbol GBU
Shares Issued 384,100,056
Close 2013-09-11 C$ 0.75
Market Cap C$ 288,075,042
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Globe's Berman wary of Gabriel Resources' prospects

2013-09-12 04:39 ET - In the News

The Globe and Mail reports in its Thursday, Sept. 12, edition that some investors see an opportunity in Gabriel Resources after the shares slumped to record lows at the start of the week. The Globe's David Berman writes that some investors still hope Gabriel will either get its Romanian gold mine going, or that it will successfully sue the Romanian government for killing the project. Either way, investors are being too optimistic, says Mr. Berman. Gabriel has been trying to develop the Rosia Montana mine over the past decade but has been running into opposition within Romania, largely related to what the mine will do to the environment and the local village. This opposition looks set to kill the project -- a particularly painful scenario for the company, given that it is not exactly diversified. It has no revenues and operates only in Romania. Gabriel is not backing down. It is threatening to sue the government for $4-billion (U.S.), citing what it sees as "multiple breaches of international investment treaties." It apparently has some big backers, but Gabriel also faces skepticism over the the mine's viability, making the political drama look like a sideshow to its future.

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