Gabriel Resources wants second chance to develop gold mining project in Romania

Gabriel Resources announced at the Toronto Stock Exchange, where its shares are traded, that it has filed [supposedly to ICSID] a notice of dispute against Romania under two bilateral investment protection treaties following the Romanian Government's decision not to extend the term of the Roşia Montană exploitation license.

The notice was also formally sent to the President and Prime Minister of Romania, the company's press release reads.

The Romanian state decided in June not to extend the concession license for Roșia Montană Gold Corporation, as announced by the National Mineral Resources Authority (ANMR).

The company believes this unjustified and arbitrary decision, contrary to Romanian law, represents a further egregious violation by Romania of the rule of law and the group's established investment rights, as protected by multiple bilateral investment treaties, it said.

The company underlines that the notice initiates a 90-day "cooling-off period," following which arbitration proceedings may be commenced.

Gabriel Resources explains that it has the option, but not the obligation, to initiate arbitration after 90 days.

The company has also reiterated its openness to high-level discussions with the Romanian Government aimed at reaching a mutually agreeable resolution.

To facilitate this, it has extended a formal invitation to the Government "for good-faith negotiations" regarding the license extension denial.

Earlier in March, the Arbitral Tribunal of the World Bank's settlement center ICSID rejected all the claims against Romania by Gabriel Resources, which accused the Romanian Government of expropriating its investments in the Rosia Montana gold mining project and breaching two bilateral foreign investment agreements, with the UK and Canada. Gabriel Resources was also asked to pay some USD 10 million in legal fees to Romania.

Gabriel Resources sued Romania at the World Bank's ICSID back in 2015, citing USD 4.4 billion losses incurred as a result of Romania's denial of the environmental documents necessary for the development of the project.

(Photo: Inquam Photos/ Ovidiu Dumitru Matiu)