JOHANNESBURG (miningweekly.com) – TSX-listed Gabriel Resources remained committed to the construction and operation of a world-class mine at Roşia Montană, in Romania, noted Gabriel president and CEO Jonathan Henry on Monday.
The Canadian resource company, which had been focused on permitting and developing the gold and silver project over the last 17 years, filed a request for arbitration against Romania on July 21 over the development of Roşia Montană and violations by the government of Romania of the protections afforded by certain bilateral investment treaties.
Gabriel, which held an indirect 80.69% interest in the project, emphasised that, notwithstanding its request for arbitration against Romania before the World Bank's International Centre for Settlement of Investment Disputes, it remained focused on trying to engage formally with the Romanian authorities.
“…our overriding wish remains that an amicable resolution can be reached," noted Henry.
He explained that without any response from senior political decision-makers to the company’s invitations for open and transparent dialogue on the future of the project, Gabriel had no alternative but to pursue the avenue of international arbitration to protect its rights.
Gabriel was also focused on increasing shareholder value and continuing to reduce its activities and costs to those that supported the preservation of its core assets and rights and to carefully manage its cash resources.
The company on Monday also published its results for the second quarter ended June 30, reporting a net loss of $4.6-million, or $0.01 a share.
Cash and cash equivalents at June 30 amounted to $32.1-million, while the company's average monthly net cash use during the period under review and the first quarter of 2015 was $1.8-million. This compared with a full year monthly average of $2.3-million in the 2014 financial year and $3.9-million in 2013.
Excluding legal and other advisory services in respect of the notice and request for arbitration, Gabriel’s average monthly net cash use was $1.5-million during the six months ended June 30.
The company noted that the ongoing cost-saving measures implemented to align Gabriel's cost base with the repeated delays in the regulatory assessment and permitting procedures for Roşia Montană had a long-term goal of ensuring that the company remained financially strong for the foreseeable future.
Gabriel held $32.1-million in cash and cash equivalents as at June 30.