Investors shave nearly $900 million off market cap in one of swiftest, largest single-day losses for a Canadian junior miner
Yukon-based Gabriel Resources Ltd. once harboured ambitions to build one of Europe’s largest gold and silver mines in the Carpathian Mountains of Romania, which has been mined by humans for at least 2,000 years. But the proposed mining area is now on the UNESCO World Heritage list and Gabriel just lost an eight-year legal battle with Romania that has left the company’s future uncertain.
Gabriel’s experience is a cautionary tale that shows how shifting attitudes around resource extraction and an evolving global financial system have changed the business of mining.
The main investing thesis behind the company for more than a decade has been its arbitration claim against Romania at the World Bank’s Washington, D.C.-based International Centre for Settlement of Investment Disputes. In it, Gabriel was seeking US$4.4 billion from the country for blocking its proposed mine.
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