ANAF blocked the trading of Gabriel Resources shares

The Canadian company Gabriel Resources has announced that it cannot sell the shares held in the Roşia Montană project, because the Romanian state has seized them in order to recover court costs of 9.5 million euros. The seizure was instituted on March 29, 2024 by ANAF officials from Alba County on the 80.6858% stake held by Gabriel Resources in Roşia Montană Gold Corporation.

In a press release, the representatives of the Gabriel Resources company claim that the company has only 1.5 million dollars in its accounts, money that will run out by the end of May. The Company is in discussions with existing investors and other interested parties to obtain additional funds to fund future strategic objectives and for general working capital purposes.

However, there is a major risk that Gabriel Resources will not be able to obtain the necessary funds. Failure to raise funds would have a negative impact on the company's financial condition and ability to continue as a going concern.

Gabriel Resources must pay approximately 10 million euros in court costs to Romania, but the company intends to challenge the decision of the International Arbitration Court through the annulment process provided for by the ICSID Convention. The deadline for submitting a request for annulment is 120 days from the date of the decision of the International Arbitration Court.

On March 8, 2024, ICSID announced that Romania won the dispute regarding Roşia Montană, opened by the Canadians from Gabriel Resources in the ICSID arbitration procedure, and the company was obliged to pay the court costs incurred by the authorities in our country.

On the same day, the Canadian company's shares collapsed on the stock market, reaching a value close to zero, after their value had tripled since the beginning of 2024, amid the defeatist statements of Prime Minister Marcel Ciolacu who had announced that it seems that our country will lose this trial and the Romanian state would have to pay compensation of a maximum of 6.7 billion dollars.

Moreover, in order to remove the risk of such a payment that would have been a real millstone in terms of the budget deficit, Marcel Boloş, the Minister of Finance, submitted at the end of February the solution for the Roşia Montană exploitation project to continue in case our country will lose the international arbitration process.

Prime Minister Marcel Ciolacu spoke against this solution two days before the court's decision, who said that he would organize a referendum together with the European Parliament and local elections on June 9, so that Romanian citizens could express themselves by voting whether they agree or not with the draw the gold from Roşia Montană.

Fortunately for the two officials and unfortunately for those from Gabriel Resources, on March 8 the international arbitration court ruled in favor of Romania, rejected the Canadian company's claim for compensation, and Roşia Montană remains a UNESCO Heritage Site.