Gabriel Resources challenges seizure of gold mining company shares by the Romanian state

Gabriel Resources, the majority shareholder of Roșia Montană Gold Corporation SA, has sued several Romanian institutions as well as the RMGC company itself, in an attempt to challenge the seizure placed on the shares of the latter meant to settle its USD 10 million debt to Romania.

The USD 10 million represents the damages awarded to Romania following the decision in the arbitration case between the country and the mining company regarding the gold mining project at Roșia Montană. The Washington-based International Center for Settlement of Investment Disputes (ICSID) ruled in the case in March, noting that Romania lawfully stopped the project.

In separate cases, RMGC has also sued Romanian authorities, represented by various institutions, according to News.ro.

Four cases have been opened at the Alba Tribunal, with Gabriel Resources (Jersey) Limited and Roșia Montană Gold Corporation as plaintiffs. The former is challenging a resolution issued on April 1, 2024, by the director of the Trade Register in Alba County, which imposed a seizure on the shares of RMGC. The decision was made at the request of ANAF representatives, through the Alba Public Finance Administration, due to the USD 10 million debt. ANAF is seeking to seize an 80% stake in the company.

The Romanian state has also requested precautionary measures imposing restrictions on the sale or transfer of shares held by Gabriel Jersey in its subsidiary in Romania, Roșia Montană Gold Corporation SA, pending the resolution of the cost order.

Asked for a comment regarding the seizure of the shares of Gabriel Resources, Romanian prime minister Marcel Ciolacu said that ANAF was simply doing its job.

"ANAF is doing its duty. We won a lawsuit. Legal procedures have started. I assume that if they had won the lawsuit, they would have done the same," Ciolacu said.

Earlier this year, ICSID dismissed the claims of Gabriel Resources in the Roșia Montană case. The court also obliged the companies to pay Romania the costs of the lawsuit, as well as interest.

(Photo source: Ene | Dreamstime.com)