Benny Steinmetz buys Canadian gold co stake

Benny Steinmetz-owned BSG Group Ltd. unit BSG Capital Markets PCC Ltd. has acquired 30 million units in Canadian mining concern Gabriel Resources Ltd. (TSX: GBU), amounting to 9% of its share capital, for $67.5 million, through a private placement. Each unit comprises one share and one warrant.

If BSG exercises all the warrants, it will increase its stake in Gabriel Resources to 16%.

Gabriel Resources is developing a gold mine in Romania through its Rosia Montana project, in which it owns 80.2%. The company has been hampered by environmental protection authorities worried about the impact of the mining on local communities. BSG's investment will help the company develop the mine, and with other financial expenditures.

The Rosia Montana mine is estimated to have some of the largest gold reserves in the world, capable of producing 510,000 ounces a year. Steinmetz's investment comes as the price of gold soared to $1,114 per ounce on Wall Street yesterday. Some analysts believe that the price will climb still higher.

Published by Globes [online], Israel business news - www.globes-online.com - on November 12, 2009

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