Gabriel Resources Ltd. closed a US$20 million financing to fund its arbitration battle over the Rosia Montana gold project in a bid for C$5.7 billion in compensation from Romania, according to a Jan. 15 release.
The company has said the funds will help cover legal costs as it prepares for a hearing of its case before the World Bank's International Centre for Settlement of Investment Disputes, in which it alleges the Romanian government unfairly blocked development of the gold project.
Gabriel Resources Chief Commercial Officer Richard Brown said Romania is due to submit a rejoinder in the arbitration case in May. A hearing is scheduled to follow in December.
Gabriel Resources raised the funds from existing shareholders. It issued 106,425,847 units at 24.75 U.S. cents apiece, with each unit comprising a common share and a warrant exercisable at 49 cents per share for five years. Assuming the financing is fully exercised, the shares issued represent about 55.4% of the company's nondiluted issued and outstanding shares.