Saturday, February 28th-2.8°C
25355
24806

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

25320


Recent Trending




Today's Market
S&P TSX15234.34-6.82
S&P CDNX706.73+5.80
DJIA18132.70-81.72
Nasdaq4963.528-24.362
S&P 5002104.50-6.24
CDN Dollar0.7996+0.0004
Gold1203.00+6.10
Oil52.14+1.53
Lumber297.20+1.20
Natural Gas2.895-0.007

 
Okanagan Companies
Pacific Safety0.12+0.005
Knighthawk0.010.00
QHR Technologies Inc1.55-0.03
Cantex0.035-0.005
Anavex Life Sciences0.190.00
Metalex Ventures0.035-0.005
Russel Metals25.38+0.08
Copper Mountain Mining1.30+0.04
Colorado Resources0.15+0.015
ReliaBrand Inc0.008-0.0007
Sunrise Resources Ltd0.05+0.015
Mission Ready Services0.235+0.025

 



25195

FEATURED Property
19824112212 Gulley Road
3 bedrooms 2 baths
$799,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...


Are you asking the right questions?

Have you ever had this happen to you? You are in the middle of your second or third good discussion with a prospect and everything seems to be going great. The prospect seems engaged and happy to work...


It's OK to say 'I'm sorry'

Photo: ContributedStand-up comedians and sitcoms have been making fun of Canadians for being polite as long as I can remember. Being known for our niceness is certainly not a bad thing and I wish more...

_








Member of BC Press Council


24843