Tuesday, November 25th3.0°C
22246
23988

Gabriel posts Q4 loss, says it has no more clarity on Rosia Montana permits

TORONTO - Gabriel Resources Ltd. (TSX:GBU) reported a fourth quarter loss $500,000 as it was forced to increase spending in communications and lawyers amid an ongoing review of its key project by the Romanian government.

Gabriel says that despite various committees put in place to look into the Rosia Montana mine and some of its permits, "no progress or clarity of process has been forthcoming" in the quarter.

As a result, it cannot provide shareholders with any guidance on time frames for the project, and it expects the cash impact to affect first quarter spending.

The loss for the year ended Dec. 31 was $2.5 million, or one cent per share.

The miner has faced significant opposition related to the Rosia Montana project, particularly over the company's planned use of cyanide to extract gold and silver from the ore.

Last year, legislators ruled against a bill that would've allowed the Rosia Montana project to proceed. The company has been waiting for 14 years for permits for the project.

The latest setback came in January, when a tribunal in Romania temporarily suspended a key permit for its Carnic open pit at Rosia Montana after three non-governmental organizations applied for the suspension of the archaeological discharge certificate, pending a court case to cancel the permit.

The company says it is now dealing with a new coalition government, which was sworn in earlier this month, and was forced to lay off 400 Romanian employees, who will be terminated by May 1 if no progress is on the the project.

"We still remain fully committed to constructing and operating a mine at Rosia Montana but we need to see a similar commitment from Romania," said Gabriel Resources chief executive Jonathan Henry.

"With no environmental permitting progress forthcoming, and following expenditure in Romania of $550 million over a fifteen-year period, the company has recently had to give almost 400 Romanian employees notice of redundancy.

All of these jobs and more will be lost unless we see a real and transparent process from the new government in the coming weeks and months to proceed with the project, which has the potential to create over 3,600 jobs."

Rosia Montana has reported resources of 17.1 million ounces of gold and 81.1 million ounces of silver. It is held by Rosia Montana Gold Corp., a Romanian company that is 81 per cent owned by Gabriel.

The company held $42.1 million of cash and cash equivalents as at Dec. 31.

On the Toronto Stock Exchange, Gabriel shares were trading at $1.17, down two cents.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15073.65+58.24
S&P CDNX780.64-6.86
DJIA17814.94-2.96
Nasdaq4758.252+3.36
S&P 5002067.03-2.38
CDN Dollar0.8874-0.001
Gold1198.60+1.50
Oil73.86-0.23
Lumber328.80-0.70
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.32+0.04
Cantex0.040.00
Anavex Life Sciences0.175-0.005
Metalex Ventures0.030.00
Russel Metals32.14+0.65
Copper Mountain Mining2.15-0.02
Colorado Resources0.130.00
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.325-0.04

 
23744




FEATURED Property
21329883355 Dunkley Road
3 bedrooms 2 baths
$299,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...

_



24231

24158


Member of BC Press Council


22842