Gabriel Resources Ltd. Faces Setback in ICSID Arbitration Claims Against Romanian Government

On March 8, 2024, Gabriel Resources Ltd. announced that its arbitration claims against the Romanian Government were dismissed, a decision made by a majority of two to one in the tribunal. This legal setback mandates Gabriel to compensate Romania approximately US$10 million in legal fees and expenses. Gabriel Resources, expressing strong disagreement, labeled the tribunal's decision as fundamentally flawed and unjust, asserting that it disregards evidence of Romania's politically motivated decisions.

The company is exploring avenues to contest this ruling by potentially invoking the annulment process as outlined in the ICSID Convention. Current financial records indicate Gabriel has around C$2.7 million, projected to deplete by May 2024. Plans are underway to reassess its financial obligations and funding avenues critically. Gabriel also flags the necessity for additional funding in the near future to sustain operations and possibly finance annulment processes, albeit acknowledging the challenges in securing this financial support.

The ruling carries profound implications for Gabriel's financial stability and operational continuity. While the company deliberates its next steps, the future remains uncertain, hinging on its ability to resecure its financial footing and judiciously navigate through its legal challenges.