Gabriel Resources Ltd. will raise up to US$20 million to supplement its ongoing arbitration case against Romania over the Rosia Montana gold project.

The company entered into definitive subscription agreements with investors for a nonbrokered private placement of up to 81,730,233 units at 32.25 Canadian cents each. Each unit will consist of 1 share and 1 share purchase warrant, each of which will entitle the holder to acquire a share at 64.5 cents within five years after closing.

The company said Aug. 6 that it also intends to use the proceeds for general working capital.

The placement is expected to close around Aug. 22. The company closed a US$20 million financing in January to fund the arbitration battle, in which it is seeking C$5.7 billion in compensation for losses after the Romanian Parliament rejected a bill that would have allowed the project to go ahead.