TORONTO (miningweekly.com) – Toronto-based gold hopeful Gabriel Resources intends to raise some C$100-million, through a combination of a public offering and a private placement to two existing shareholders.

The money raised will go towards costs associated with developing the company's Rosia Montana gold project, in Romania, and for “general corporate purposes”, the firm said.

Electrum Strategic Resources and Paulson & Co have both indicated they will subscribe, through a private placement, for the number of shares required to maintain their respective proportionate interests in Gabriel after the public offering is completed.

The public offering will be conducted through a syndicate led by Cormark Securities and RBC Capital Markets, and will be priced when the parties enter into a definitive underwriting agreement.

The private placement shares will be sold at the same price as the offering.

But Gabriel said that Newmont Mining, which currently owns 19,7% of the firm, has waived its pre-emptive right to participate in the public offering and the private placement.

Still, Newmont continues to hold two board seats, and will own some 17% after the two financings are completed.

Gabriel holds an 80% stake in the Rosia Montana Gold Corporation, and Romanian State-owned enterprise Minvest SA owns 19,3%.

The project has drawn opposition from nongovernmental groups as well as some corners of the Romanian government, and has been put on hold until the company can resolve a number of legal and permitting disputes with the government.

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