Gabriel Resources Ltd., a Canadian mining company, said it will sell C$109 million ($93 million) of shares to finance the development of a controversial gold and silver mine in Romania.
The Toronto-based company will sell 25 million shares at C$4.35 through a group of underwriters led by RBC Capital Markets and Sprott Securities Inc., Gabriel said in a statement. That's a 5-cent discount on the company's closing price yesterday on the Toronto Stock Exchange. The C$437 million project, Gabriel's first, has been stalled for years by opposition from residents, environmental groups and some Romanian politicians. Gabriel has estimated the Rosia Montana deposit may hold 10.6 million ounces of gold and 52.3 million ounces of silver. Newmont Mining Corp., the world's second-biggest gold producer, has an option to buy as much as 20% of the offering, the statement said. Shares of Gabriel rose 12 cents, or 2.7%, to C$4.52 at 10:47 a.m. in Toronto Stock Exchange trading. (Bloomberg)