UPDATE 1-Gabriel Resources to raise C$100 mln

*To raise C$100 mln

*To use proceeds to develop Rosia Montana gold project

May 26 (Reuters) - Canadian mining firm Gabriel Resources Ltd (GBU.TO) said it plans to raise about C$100 million ($88.81 million) through a public offering of common shares and a private placement to certain shareholders to develop its gold project in Romania.

The Toronto-based company said shareholders Electrum Strategic Holdings LLC and Paulson & Co Inc have indicated their intention to subscribe for the private placement.

Closing of the private placement and the public offering will each be conditional upon the closing of the other, Gabriel Resources said.

The public offering will be conducted through a syndicate of underwriters led by Cormark Securities Inc and RBC Capital Markets as joint bookrunners.

Shares of the company closed at C$2.55 Tuesday on the Toronto Stock Exchange. ($1=1.126 Canadian Dollar) (Reporting by Ashutosh Joshi in Bangalore; Editing by Aradhana Aravindan)