Gabriel Resources Ltd. announces the closing of its previously announced private placement with BSG Capital Markets PCC Limited, which is part of the Beny Steinmetz Group. Pursuant to the Private Placement, BSG subscribed for 30 million Units at a subscription price of $2.25 per Unit for proceeds to the Company of $67.5 million. Each Unit consists of one common share of Gabriel and one common share purchase warrant entitling BSG to purchase one additional common share of Gabriel at $2.50 per share for 18 months rising to $3.00 per share for the final six months of the two year warrant.
The Company plans to use the net proceeds of the Private Placement towards developing the Company's 80.23% owned Rosia Montana gold project.
BSG has advised Gabriel that it has subscribed for the Units for investment purposes but it reserves the right to increase or decrease its interest in Gabriel as market circumstances may dictate.