Gabriel Resources arranges $44-million financing
Gabriel Resources Ltd (2) GBU
Shares issued 81,510,954 Mar 14 close $3.65
Fri 15 Mar 2002 News Release
Mr. Frank Timis reports
GABRIEL RESOURCES LTD. - $44 MILLION PRIVATE PLACEMENT
Gabriel Resources has arranged, subject to regulatory approval, a
non-brokered private placement to a number of institutional investors,
which will raise gross proceeds of approximately $44-million for Gabriel.
The proceeds of this financing will be used to finance a substantial
portion of Gabriel's equity component of its proposed project financing for
the development of a large scale open pit mine at Gabriel's 80-per-cent
owned Rosia Montana project in Romania, which has a mineable reserve of
10.4 million ounces of gold.
The private placement will be structured by way of fully paid common share
purchase warrants at a purchase price of $3.50 per warrant. Each warrant
will be exercisable at any time on or before a date, which is 120 days
after closing of the private placement, into one common share of Gabriel
without payment of additional consideration. The exercise of the warrants
will result in the issue of a total of 12.6 million common shares of
Gabriel. The warrants also provide that if Gabriel were to issue common
shares in connection with either a private or public equity financing
during the 120-day term of the warrants, at a price less than $3.50 per
share, then the exercise price of the warrants will be adjusted downward to
equal the issue price of such offering and the number of common shares
issuable under the warrants will be increased, up to a maximum of 14.41
million common shares.
The securities offered have not and will not be registered under the United
States Securities Act of 1933 as amended, and may not be offered or sold in
the United States unless registered under the 1933 Act or an exemption from
such registration requirements is available. |
