Could this Be Positive News? I Sure Do Hope So.
________Stockwatch New Release_______
Exall Resources plans reorganization
2005-02-17 10:19 ET - News Release
Mr. Stephen Roman reports
EXALL CREATES NEW COMPANY FOR MINING ASSETS
Exall Resources Ltd.'s board of directors has authorized submitting to shareholders a reorganization plan whereby the company's non-oil-and-gas assets will be transferred to a new company named Gold Eagle Mines Ltd. The shares of Gold Eagle Mines will be distributed by prospectus to holders of Exall's outstanding common shares, as a dividend-in-kind on the basis of one Gold Eagle Mines share for each five Exall common shares held. Concurrent with the distribution, Dominck & Dominick Securities Inc. has been engaged to raise up to $3-million to finance Gold Eagle Mines' 50-per-cent share of exploration expenditures at the Gold Eagle Mine property in Red Lake, Ont. Upon completion of the reorganization, Exall will change its name to Exall Energy Inc.
Additional information will be made available in an information circular expected to be mailed to Exall shareholders in March with a vote expected to be held in late April. Approximately 11 million common shares of Gold Eagle Mines will be issued and outstanding prior to completion of the offering. Gold Eagle Mines will make an application to have the shares listed for trading on the Toronto Stock Exchange. All of these matters will be subject to board and regulatory approvals. The board and management believe the creation of a company focused on precious metals exploration and development will enhance the company's ability to raise additional funds and pursue new opportunities in the precious metals sector. In addition, management believes that the reorganization will facilitate the assessment of value of Exall's assets and provide shareholders with direct ownership in two well-focused companies.
Gold Eagle mine property
On Jan. 6, 2005, Exall filed the full Micon International Ltd. National Instrument 43-101 report on the Gold Eagle joint venture's Western Discovery zone located southwest of the Gold Eagle mine shaft. Micon published a resource estimate (uncut) of 309,000 tonnes grading 16.67 grams per tonne (0.52 ounce per ton) containing 165,700 ounces of gold (see news as reported in Stockwatch on Dec. 7, 2004). The Bruce Channel zone (see news as reported in Stockwatch on Jan. 26, 2005) and the 1946 zone were not reported in the Micon study. Drilling recommenced on Feb. 11, 2005 (see news as reported in Stockwatch on Feb. 16, 2005). The 2005 drill program is for a minimum of 10,000 metres and a maximum of 25,000 metres and will be focused to the south and east of the Western Discovery zone as well as completing an infill drilling program as recommended in the Micon report.
Oil and gas interests
As reported in Stockwatch on Jan. 27, 2005, an announcement was made that Exall and partners recently drilled and cased an exploratory well on the Aitken Creek natural gas prospect near Fort St. John in northeast British Columbia. Exall participated for a 12.5-per-cent share of costs in the well (7.5-per-cent after payout) which was drilled to the Debolt formation at approximately 2,100 metres and cased for natural gas potential in several target horizons. Exall's other oil and gas assets include a 14.5-per-cent interest in the Jayar property, near Grande Prairie, Alta.; a 75-per-cent interest in the Sugden well located northeast of Edmonton, Alta.; and a 7.5-per-cent and 7.8947-per-cent interest, respectively, in two wells on the Susan B. Harris property, located in Harrison county, Texas.
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