Canada’s Sterling Gets $5M Financing For Ops In Romania, North Sea

In 2007, Canaccord was one of the intermediaries of a capital increase in Canada’s Gabriel Resources, the owner of Rosia Montana Gold Corporation that aims to extract gold and silver from the Rosia Montana region in western Romania.

 

Sterling has a common shareholder with Gabriel Resources, namely the Canadian investment fund Sprott Asset Management, which owns stakes in both companies.

 

Canaccord Capital Corporation will fully subscribe in an issuance of secured notes developed by Sterling Resources, which will receive $5 million, Sterling announced Tuesday in a press release.

 

"Sterling will apply the net proceeds of this issue towards exploration and appraisal drilling programs in the U.K. North Sea and Romania, and for general corporate purposes," the company stated.

 

As of 1992, Sterling owns the exploration rights for the hydrocarbons in blocks XIII Pelican and XV Midia from the Black Sea.

 

An appendix of the oil-drilling contract closed between Romania’s Mineral Resources Agency ANRM and Sterling Resources refers explicitly to the dispute between Romania and Ukraine, specifying that the exploration right will become an exploitation one after The Hague Court’s decision.

 

The International Court of Justice at The Hague drew on February 3 a new maritime border between Romania and Ukraine, settling a decade-old dispute.

 

Thus, the Court’s decision and an appendix to the exploration contract give Sterling exploration rights in blocks XIII Pelican and XV Midia in the Black Sea.

 

Mid-February, Romania’s Government Control Body began to check, at the headquarters of ANRM and the ministries of Justice, Environment, Foreign Affairs and Finance, the documents allowing Sterling to extract crude oil and natural gas from the Black Sea.