Gabriel Resources Plans US$4 Million Private Placement

Gabriel Resources Ltd., listed on TSXV, has announced a private placement aiming to raise approximately US$4 million by issuing up to 114,152,000 units. Each unit, priced at C$0.05, includes one common share, one warrant, and one contingent value right (CVR). The company anticipates netting US$2.46 million after settling a US$1.54 million debt with lenders Electrum Global Holdings, Paulson & Co., and Swiss Capital.

The offering requires final TSXV approval and is set to close by February 28, 2025. The participation of insiders makes this a "related party transaction" under existing regulations, but exemptions due to the company's financial difficulties allow it to proceed.

If successful, the offering will increase insider holdings to 61.8% of common shares. The company plans to use the proceeds for general corporate purposes and to maintain interests in Romania. Gabriel's securities from this offering are not registered under U.S. laws and are not available in the U.S.