Newmont expands interest in Gabriel

first_imgNewmont Canada has acquired 3,878,302 common shares of Gabriel Resources through open market purchases on the Toronto Stock Exchange, representing approximately 1.5% of Gabriel’s outstanding common shares. Newmont holds, in the aggregate as of today’s date, 50,724,702 common shares, representing approximately 19.9% of the outstanding common shares of Gabriel. Gabriel is battling against some of the worst NGO atrocities ever seen to develop the Rosia Montana project in Romania. The Rosia Montana project is located in west-central Romania in a historic mining district known as the Golden Quadrilateral. This famous mining district in the South Apuseni Mountains of Transylvania covers an area of approximately 900 km2 immediately to the north of the regional centre of Deva. The Rosia Montana gold deposits are located 80 km northwest (by paved road) of the regional centre of Alba-Iulia, via the towns of Zlatna and Abrud. The village of Rosia Montana and the nearby town of Abrud are today the two main centres housing staff and associated infrastructure for the Rosia Montana project.Not only would this project provide much needed jobs in the area, but it would also clean up an area that suffers badly from some of the worst pollution seen at old gold mining sites in Europe. However, certain NGOs, for purely selfish reasons, have targetted the project for irrational opposition.Newmont says “the acquisition of the common shares of Gabriel was made for investment purposes only. Newmont may, subject to market conditions and in accordance with applicable securities laws, take other actions in respect of its investment in Gabriel, including making additional investments in or effecting dispositions of securities of Gabriel, including additional purchases of common shares of Gabriel.”As previously disclosed by Gabriel, Newmont has entered into a nominee agreement with Gabriel in respect of the appointment of two nominees of Newmont to the board of Gabriel. The nominee agreement also provides, among other things, that at Gabriel’s 2008 annual meeting, Newmont will vote its securities in favour of each of Management’s nominees for election to the Board, appointment of auditors and amendment of the Company’s deferred share unit plan. The Nominee Agreement also restricts Newmont from taking certain actions (subject to certain exceptions), including without limitation, acquiring any securities of Gabriel that would result in Newmont holding 20.0% or more of the outstanding common shares of Gabriel. The Nominee Agreement terminates, among other events, upon the resignation of Newmont’s nominee.last_img read more