August 16, 2006
Gabriel, Rosia Montana Completes $85 Million Public Offering
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NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Toronto, Canada -- August 16, 2006 -- Gabriel Resources Ltd. ("Gabriel" or the "Company") (TSX - "GBU") is pleased to announce the closing of the sale of 27,000,000 common shares (the "Shares") at Cdn$3.15 per Share to a syndicate of underwriters led by RBC Capital Markets, as sole bookrunner, and Sprott Securities Inc. as co-lead manager, and including BMO Nesbitt Burns Inc., Canaccord Capital Corporation, GMP Securities LP, Dundee Securities Corporation, Orion Securities Inc. and Paradigm Capital Inc. (collectively the "Underwriters"), for aggregate gross proceeds of Cdn$85,050,000.
"We are pleased with the interest we have seen in our offering," said Alan R. Hill, President and CEO, "and especially for the markets to signal such confidence in us as we move through public consultations in Romania," a reference to the public meetings regarding the Rosia Montana Environmental Impact Assessment which began in late July and run through the end of August. The Company intends to use the net proceeds of the offering to advance the development of the Rosia Montana gold deposit in Romania, completing surface rights acquisition, advancing detailed engineering, ordering long lead-time equipment and commencing construction of the new village of Piatra Alba.
The Shares have not been, nor will be, registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement of such Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under the securities laws of any such jurisdiction. Any public offering of securities to be made in the United States would, if made, be made by means of a prospectus that could be obtained from the Company that would contain detailed information about the Company and management as well as financial statements.
Gabriel Resources
Gabriel is a Canadian based resource company committed to responsible mining and sustainable development in the communities in which it operates. Gabriel is currently engaged in the exploration and development of mineral properties in Romania and is presently engaged in the development of its 80% owned Rosia Montana gold project.
Forward-Looking Statements: This press release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the closing of the Offering and the Company's plans with respect to the exploration and development of its projects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
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