FYI

01/12/2010

Gabriel Resources, Carpathian Gold and European Goldfields could ultimately be taken over by larger players interested in Romanian projects - Report

Story Gabriel Resources (TSE:GBU), Carpathian Gold (TSE:CPN) and European Goldfields (TSE:EGU), three Canadian mining companies operating in Romania, could become takeover candidates, according to Report on Business' November edition.

Peter Munk, chairman of Barrick Gold, was cited in the report as saying that Toronto, Ontario-based Gabriel, Toronto, Ontario-based Carpathian and Whitehorse, Yukon-based European Goldfields will likely be acquired by larger players, as soon as they obtain construction permits for their respective projects in Romania.

While Munk downplayed the importance of Romania to Barrick, he was quoted as saying that smaller players in the country, who will encounter financing and technological difficulties when working on new mines, could be on the receiving end of bids.

According to an unsourced section of the report, potential buyers include Toronto, Ontario-based entities such as Barrick, Agnico-Eagle Mines, Yamana Gold and Kinross Gold; Greenwood Village, Colorado-based Newmont Mining; Vancouver, BC-based Goldcorp; Russia's Polyus Gold; and some Australia-based miners. Meanwhile, an unidentified CEO at one of companies keeping tabs on mining companies in Romania was cited in the report as saying that the "reserves" in Transylvania, Romania, are too large to ignore.

An unsourced section of the report added that Gabriel's three investors – Electrum Group, Beny Steinmetz-affiliated BSG Capital Markets and Pulson & Co. – collectively own close to 50% of the company and will likely pursue exit strategies as soon as Gabriel gets its needed permits and, subsequently, sees its stock value rise.

[Report onBusiness Magazine]