Gabriel Resources GBU 4/11/00 Issue Resource Opportunities
stockhouse.ca
Excerpt
...BEST BUYS: Platinum/palladium companies are sitll very much in favor, with goof results attracting investor interest. Several "undiscovered" companies in this sector look very attractive: LMX, Altoro and East West. Gabriel is a bargain (see below). Other stocks that have been recommended recently are also still good buys.
GABRIEL RESOURCES [V.GBU]: Gabriel's share price was knocked back by an inaccurate newspaper article, creating a buying opportunity for investors. The article seriously distorted the situation, and I expect the share price to recover as investors come to realize the true story. On April 6, an article appeared in the National Post newspaper headed "Gabriel's Romanian mining plans face chance of ending in ruins". The article stated that the project "threatens 1,800 year old ruins" and implied that the drive to protect the archaelogical site could endanger the project. There are indeed many artifacts dating from the Roman era in this area. However, anybody that has travelled in Europe will know that such artifacts are common where ever the Romans held sway. There is no possibility that the archaeological significance of this site will have any impact whatever on the development of the project.
The situation arose as Gabriel began its bankable feasibility study on the Rosia Montana project (8 million onces of gold and 49 million ounces of silver, and still growing). One step in any such study is to assess the cultural/historical impact of the project. Gabriel invited the Romanian Ministry of Culture to co-ordinate the study.
The study will catalog any items of interest, and will then develop a plan to remove these items to the care of a Romanian museum. The project will actually enhance the archaelogical integrity of the area by protecting any relics that are present.
My guess is that one of the contenders to get the the contract to carry out the archaeolgical study went to the press in an effort to raise the profile (and the price) of this project.
The Romanian and local governments are solidly in support of the development of Rosia Montana, which sits in the midst of a mining area with high unemployment.
Exploration continues on Rosia Montana, which has the potential to expand beyond the current 8 million ounces. Work is also continuing on the company's other projects in the area, which have similar potential. The company has set May 18 for its annual general meeting, at which it will seek approval to spin off the exploration projects into a second public company, to be called European Goldfields. Shareholders will then hold shares in Gabriel - which is likely to be taken over by a major - and another company with excellent prospects to evolve into a second Gabriel. Investors should take advantage of this dip in the Gabriel price to enhance their positions. ..
And from the 4/25/00 Issue:
stockhouse.ca.
(Excerpt)
... GABRIEL RESOURCES [V.GBU] announced details of its proposed reorganization, which will divide its present mineral resource assets between two separate public companies. Gabriel will continue to hold its most advanced project - Rosia Montana - and the Bucium project. The newly created public company - European Goldfields Ltd. will hold the other projects. Shareholder of Gabriel on May 25, 2000 will receive one European Goldfields Ltd. common share for every 10 Gabriel common shares held on such date. ... |
