Gabriel Resources Ltd. says it's working with the Romanian government in hopes of softening the impact of a recently announced doubling of royalties on precious metal production.
The Toronto-headquartered company said Thursday it's aware a government website announced Dec. 27 that Romania's royalties on precious metal production will rise to 8 per cent from 4 per cent.
Gabriel says it's awaiting a formal clarification on if, or how, the change would affect its flagship Rosia Montana gold and silver project. Gabriel owns an 80.46-per-cent stake in the project but is negotiating a new ownership structure.
The yet-to-be-built mine in western Transylvania, which has faced considerable opposition, received the public support of President Traian Basescu in August. The company said in November that the project remained on track and said on Thursday that it's continuing to work with the government.
“The company confirms that it continues to work together with the Romanian Government in respect of potentially amending the ownership of the Project and royalty rates payable by it, in the context of the overall expected returns to Romania as well as to Gabriel shareholders from the Project.”
“A proposal in this regard is currently with the Romanian Government for consideration. These discussions remain ongoing and Gabriel awaits a response from the Romanian Government on its proposal.”