May 27, 2009 / 4:01 PM / 8 years ago

UPDATE 1-Gabriel Resources to sell 25.9 mln shares at C$2.25/shr

May 27 (Reuters) - Canadian mining firm Gabriel Resources Ltd (GBU.TO) said it will publicly sell 25.9 million common shares at C$2.25 apiece for gross proceeds of about C$58 million.

The offer price represents a discount of about 12 percent to the stock’s Tuesday closing price of C$2.55.

Cormark Securities Inc and RBC Capital Markets are acting as joint bookrunners of the offering, the company said.

The company will also raise C$42 million through a private placement, and together with the offering, it sees total gross proceeds of C$100 million ($89.85 million).

Gabriel Resources said on Tuesday that it plans to raise about C$100 million through a public offering of common shares and a private placement to certain shareholders to develop its gold project in Romania. [ID:nBNG17986]

Shares of the company were down 28 Canadian cents at C$2.27 Wednesday morning on the Toronto Stock Exchange. ($1=1.113 Canadian dollar) (Reporting by Ashutosh Joshi in Bangalore; Editing by Deepak Kannan)

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