Gabriel Resources (TSXV: GBU) issued a statement on Friday saying that the recent surge in the company’s share price is unrelated to the outcome of its arbitration process with the International Centre for Settlement of Investment Disputes (ICSID).
In July 2015, the Canadian resource company initiated arbitration process before ICSID after the Romanian government blocked the development of its flagship Roșia Montană gold-silver project.
Located in a historical mining district dating back to pre-Roman times, the Roșia Montană project represents one of the largest undeveloped gold deposits in Europe. It has a mineral reserve base totalling 10.1 million oz. of gold and 47.6 million oz. of silver, contained within 215 million tonnes at average grades of 1.46 g/t gold and 6.88 g/t silver.
The proposed open-pit mine was met with widespread protests in 2013, which forced the Romanian government to reject its permit. Revival of the project appeared more difficult after Roșia Montană became a part of the UNESCO World Heritage list.
Gabriel has been working on this project since 1997. After obtaining its licence in June 1999, the company said it has focused substantially all of their management and financial resources on the exploration, feasibility and subsequent development of the proposed gold mine.
The company said it has fulfilled its legal obligations and demonstrated Roşia Montană as a high-quality, sustainable and environmentally responsible mining project, yet Romania still “unlawfully” blocked the project without compensation, prompting the company to proceed with international arbitration.
The ICSID arbitration tribunal closed the case in September 2023, and per regulations, must issue its final decision to the parties within 120 days, which is before March 12, 2024.
Gabriel Resources closed Friday’s session 11.7% higher at C$0.57 per share, having reached a 52-week high of C$0.60 earlier. Its market capitalization ended at C$590.5 million ($438.6m).
