Gabriel completes $56.1-million private placement
Gabriel Resources Ltd (2) GBU
Shares issued 81,510,954 Mar 27 close $3.65
Wed 27 Mar 2002 News Release
Mr. Frank Timis reports
$56-MILLION PRIVATE PLACEMENT COMPLETED
Gabriel Resources has today completed its previously announced non-brokered
private placement, which due to oversubscription, has been increased from
the initial amount of $44-million to a total of $56.1-million in gross
proceeds to Gabriel.
Gabriel has issued a total of 16.04 million fully paid common share
purchase warrants at a purchase price of $3.50 per warrant. Each warrant is
exercisable at any time on or before July 27, 2002, 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 16.04 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 as a result up to a maximum of
2.31 million additional common shares may be issued.
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
Rosia Montana project in Romania, which has a mineable reserve of 10.4
million ounces of gold.
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.
Gabriel is a Canadian-based resource company engaged in the exploration and
development of mineral properties in Romania. Upon completion of this
private placement, Gabriel will have a total of approximately $84-million
in cash resources.
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