Gabriel Resources (GBU-V) and Teck have signed an agreement that will enable Gabriel to explore and develop projects in Romania.
The Vancouver-based major has agreed to invest $1.2 million and provide technical assistance in return for the right of first offer, should Gabriel decide to sell or joint-venture its projects.
Teck and two other European investors have purchased a total of 1.2 million special warrants at $1.22 each in a private placement valued at $1.4 million.
“We welcome Teck as a substantial shareholder, not only for infusion of capital but because Teck’s investment stands as an endorsement of the quality of our company and the value of our Romanian projects,” says Gabriel President Tim Wood.
The junior has a 65% interest in the Rosia Montana and Bucium projects in western Romania, 85 km northeast of the regional centre of Deva. The region hosts epithermal to mesothermal gold-silver and porphyry gold-copper mineralization associated with dacitic and andesitic intrusives.
“Rosia Montana has been mined continuously for 2,000 years and is ideally suited for open-pit mining of what is possibly the largest gold deposit in Europe,” says Wood.
Gabriel is considering redeveloping the mine and exploiting the tailings dumps. Work on the project includes tailings evaluation, data modeling, preliminary metallurgical testing, sampling millhead grades and a comparative assay program.
The company also plans to explore the Bucium intrusive complex, 10 km south of the Rosia Montana project. The area hosts four gold deposits with significant bulk-mining potential.
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