UPDATE 3-Canada's Gabriel may sue as Romania set to reject project

Mon Sep 9, 2013 11:29am EDT
 
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* Parliament due to hold session in coming days

* PM says there is clear political will to reject project

* Gabriel shares slump 72 pct to more than 14-year low

By Radu Marinas and Ioana Patran

BUCHAREST, Sept 9 (Reuters) - A long-running bid by Canadian miner Gabriel Resources Ltd to open Europe's biggest open-cast gold mine in Romania is set to be rejected due to mounting opposition, the country's Prime Minister said on Monday.

Gabriel shares slumped 72 percent to a more than 14-year low of 41 Canadian cents, before recouping some losses to trade at 75 Canadian cents. The stock traded at nearly C$8 about three years ago.

Gabriel, whose largest shareholder is hedge fund Paulson & Co with a 16 percent stake, said it could consider legal action.

"Gabriel is urgently seeking confirmation of the actual statements made and clarification of the impact on the proposed permitting of the project," the company said in a statement.

The project in the Carpathian mountains was stalled for 14 years and last month the leftist cabinet of Prime Minister Victor Ponta, which opposed it before coming to power in 2012, renegotiated the contract.   Continued...