Summary
Gabriel and its wholly-owned indirect subsidiary,
The Claimants and Respondent (together 'Parties') currently await a final decision from the presiding arbitral tribunal ('Tribunal') in the ICSID Arbitration proceedings (an arbitral award ('Award')). In a procedural order made by the Tribunal on
However, there is no specified timeframe in the ICSID Rules applicable to this case in which an Award is to be rendered by the Tribunal. Accordingly, there is no certainty as to when the written Award will be issued or whether further procedural steps may be required by the Tribunal prior to the issuance of an Award.
On
As at
The Company believes that it has sufficient funding necessary to cover its planned activities through to
The net loss for the second quarter of 2023 was
All resolutions were adopted at the annual general meeting of shareholders ('AGM') held earlier today.
Further information and commentary on the results in the second quarter of 2023 is given below. The Company has filed its Unaudited Condensed Interim Consolidated Financial Statements for Q2 2023 and related Management's Discussion & Analysis on SEDAR at www.sedar.com and each is available for review on the Company's website at www.gabrielresources.com.
Contact:
Tel: +40 730 399 019
Email: dt@gabrielresources.com
The ICSID Arbitration seeks compensation for all of the loss and damage suffered by the Claimants resulting from the Respondent's wrongful conduct and its breaches of the protections afforded by certain treaties for the promotion and protection of foreign investment to which
In
In a procedural order made by the Tribunal on
There is no specified timeframe in the ICSID Rules applicable to this case in which an Award is to be rendered by the Tribunal. Accordingly, there is no certainty as to when the written Award will be issued or whether further procedural steps may be required by the Tribunal prior to the issuance of an Award.
Any Award may be subject to a request for annulment by either party (albeit such annulment application can only be made on very limited grounds under the
Liquidity
Cash and cash equivalents at
The Company's average monthly cash usage during Q2 2023 was
At
Capital Resources
Private Placement
On
Future Financing Requirements
The Company believes that, taking into account (i) the fee agreement in respect of the deferral of payment of certain ICSID Arbitration costs and (ii) the deferral of a portion of salary and fees for certain employees and directors, it has sufficient cash to enable the Group to fund general working capital requirements together with the material estimated costs associated with the Company advancing the ICSID Arbitration through to
At that time, the Tribunal may not have yet reached a decision. Accordingly, post
Notwithstanding the Company's recent and historic funding, there is a risk that sufficient additional financing may not be available to the Company on acceptable terms, or at all.
Financial Performance
Operating loss for the second quarter of 2023 of
Overall loss for the second quarter of 2023 was also
RMGC - Government Audits and Investigations
Since the filing of the ICSID Arbitration, RMGC has been subjected to several Value Added Tax ('VAT') audits and other investigations by divisions of the
In
For over eight years, a directorate of ANAF has continued to pursue an ad hoc investigation covering a broad range of operational activities and transactions of RMGC, and several of its suppliers, consultants, and advisors, covering an extensive period spanning 1997 to 2023. The investigation remains active and ongoing and the most recent developments include:
In
These findings reports assessed transactions amounting to an aggregate value of approximately
ANAF concluded that expenditure of
A further findings report in respect of an investigation of transactions involving RMGC's core technical advisers is expected in due course.
RMGC (together with its professional advisers) has filed substantive written rebuttal submissions in response to the above-noted findings reports, identifying, amongst other things, the multiple errors and inaccuracies in such reports; that the conclusions of the findings' reports contradict the conclusions of multiple prior fiscal audits undertaken in respect of RMGC and that such conclusions disregard Romanian legislation, European jurisprudence and prior decisions of the
Gabriel and RMGC will continue to vigorously challenge and contest the continuing abusive investigations by ANAF and the flawed findings reports.
Change of Auditors
Effective as of
Annual General Meeting
The Company held its AGM earlier today,
Russia-Ukraine Conflict
Given, amongst other things, the geographical proximity of
At this time, Gabriel has not experienced any material disruption to its operations, including its limited activities in
About Gabriel
Gabriel is a Canadian resource company listed on the
Upon obtaining the License in
Forward-looking Statements
This press release contains 'forward-looking information' (also referred to as 'forward-looking statements') within the meaning of applicable Canadian securities legislation. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of the Company's operating environment. All statements, other than statements of historical fact, are forward-looking statements.
In this press release, forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies that may cause the Company's actual financial results, performance, or achievements to be materially different from those expressed or implied herein.
Some of the material factors or assumptions used to develop forward-looking statements include, without limitation, the uncertainties associated with: the ICSID Arbitration, actions by the Romanian Government, conditions or events impacting the Company's ability to fund its operations (including but not limited to the completion of further funding noted above) or service its debt, exploration, development and operation of mining properties and the overall impact of misjudgments made in good faith in the course of preparing forward-looking information.
Forward-looking statements involve risks, uncertainties, assumptions, and other factors including those set out below, that may never materialize, prove incorrect or materialize other than as currently contemplated which could cause the Company's results to differ materially from those expressed or implied by such forward-looking statements.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as 'expects', 'is expected', 'is of the view', 'anticipates', 'believes', 'plans', 'projects', 'estimates', 'assumes', 'intends', 'strategy', 'goals', 'objectives', 'potential', 'possible' or variations thereof or stating that certain actions, events, conditions or results 'may', 'could', 'would', 'should', 'might' or 'will' be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of fact and may be forward-looking statements.
Numerous factors could cause actual results to differ materially from those in the forward-looking statements, including without limitation: the duration, costs, process and outcome of the ICSID Arbitrationand enforcement of the Award; access to funding to support the Group's continued ICSID Arbitration and/or operating activities in the future; the impact on financial condition, business strategy and its implementation in
global economic and financial market conditions, including inflation risk;
the geo-political situation and the resulting economic developments arising from the unfolding conflict and humanitarian crisis as a consequence of the
This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements.
Investors are cautioned not to put undue reliance on forward-looking statements, and investors should not infer that there has been no change in the Company's affairs since the date of this press release that would warrant any modification of any forward-looking statement made in this document, other documents periodically filed with or furnished to the relevant securities regulators or documents presented on the Company's website. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice. The Company disclaims any intent or obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of assumptions or factors, whether as a result of new information, future events or otherwise, subject to the Company's disclosure obligations under applicable Canadian securities regulations. Investors are urged to read the Company's filings with Canadian securities regulatory agencies which can be viewed online at www.sedar.com.
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