Wednesday, November 28, 2007

Gabriel says Romanian court annuls mine certificate

Gabriel Resources Ltd, owner of the Rosia Montana gold project in Romania, said a court annulled a permit related to the operation. The shares plunged.
The decision can be appealed to the nation`s Supreme Court, Toronto-based Gabriel Resources said on November 27 in a statement.

Kathy Sipos, a Gabriel spokeswoman, didn`t immediately return a voicemail message seeking comment.

Romania`s government suspended an environmental review of the project in September after non-governmental organizations challenged the company`s plans. The review must be completed before Gabriel will be permitted to tap the 10 Moz deposit that would be Romania`s largest mining operation.

"We are very disappointed in the decision based on the merits of this case," Gabriel`s chief executive officer Alan Hill said in the statement. "We must wait to receive the rationale behind this decision before we determine our next steps."

Gabriel dropped 15 cents, or 9.3% to C$1.46 at 10:53 am in Toronto Stock Exchange trading, paring its market value to C$372.2 million (US$373.7 million). A close at that price would be the biggest decline since November 15.

(Bloomberg, November 21)

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