Gabriel Resources (TSXV:GBU:CA) revealed on Wednesday its plan to complete a private placement of up to 114.15 million units at C$0.05 per unit, targeting total proceeds of up to $4 million. Each unit will consist of one common share, one common share purchase warrant, and one contingent value right.
The company has already entered into binding subscription agreements with certain existing institutional and accredited investors, including Electrum Global Holdings, Paulson & Co., and Swiss Capital S.A., which are expected to contribute $3 million to the offering. An additional $1 million may be issued on either a brokered or non-brokered basis to eligible investors.
As part of the offering, Gabriel Resources has also negotiated shares-for-debt settlement agreements with Electrum, Paulson, and Swiss Capital. These agreements will see the company issue an aggregate of 43.95 million units to these lenders in full settlement of $1.54 million in outstanding debts. After this settlement, the company expects to net approximately $2.46 million in proceeds.
The company plans to use the net proceeds for general corporate purposes, which include costs associated with pursuing its annulment application, maintaining its rights and interests in Romania regarding the Rosia Montana exploitation concession and the Bucium projects, and managing its real estate assets in Romania.
The closing of the offering is scheduled to take place on or around February 28, 2025.
