More Great News? Exall Decided Not to Continue With the Planned Spin-Off.
One Guy on Stockhouse seems to think so!
Cheers,
Winzer
Press Release Source: Exall Resources Limited
Exall Reorganization Update
Wednesday October 5, 10:51 am ET
TORONTO, ONTARIO--(CCNMatthews - Oct. 5, 2005) - Exall Resources Limited ("Exall" or the "Company")(TSX:EXL - News) announced today that the Company will not spin-out its mining assets, including the Gold Eagle Mine Property and its 3,000,000 share block of Southern Star Resources Inc. into a new company as previously planned (see news releases dated February 17, 2205 and May 11, 2005). This change is in response to strong investor interest in the Company's stock amid new corporate developments. A favourable tax ruling from the Canada Revenue Agency was received on September 29, 2005 for the original spin-out transaction.
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Since Exall and its 50% joint venture partner Southern Star, announced a significant gold discovery at the Gold Eagle Mine Property in Red Lake, Ontario (see news releases August 29, 2005 and September 21, 2005), the shares of Exall have been re-rated to account for the potential of this high grade gold structure. In order not to dilute Exall shareholders, and to further the development of the recently announced successful bid for UK North Sea oil and gas concessions (see news release September 8, 2005), the Company has decided to raise new equity capital in Exall Energy (UK) Ltd. ("Exall Energy"), a wholly owned subsidiary based in London, England. The plan contemplates a public offering in Europe and a listing on London's Alternative Investment Market (AIM).
To summarize:
- Exall Resources Limited will remain a gold exploration and development company.
- Canadian and American oil and gas assets will remain in Exall to utilize available tax pools and provide the Company with a base of increasing cash flow.
- All international oil & gas assets will be held and financed through Exall Energy (UK) Ltd.
- Common shares of Exall Energy are expected to be floated as a new issue on the AIM market by mid 2006.
"In light of our recent success at the Gold Eagle Mine Property and the significant re-rating of our stock, management believes that it would be it prudent to create a new, publicly traded international oil and gas company that would benefit Exall shareholders and be accretive to the parent company" stated Stephen Roman, Exall's Chairman and CEO. "We continue to review a number of new oil and gas opportunities and expect to announce updates over the coming months that could significantly impact both the value of our international subsidiary and our North American operations."
Exall Resources Limited is a Toronto Stock Exchange listed company that trades under the symbol EXL (S.E.C. registration #82-3535). Exall is active in the business of gold exploration and development in Red Lake, Ontario, as well as oil and gas exploration, development and production from its properties in Alberta, British Columbia, Texas and the United Kingdom's North Sea sector.
There are 69.5 million common shares issued and outstanding.
Contact:
Exall Resources Limited
Stephen G. Roman
Chairman, President and CEO
(416) 368-3949
www.exall.com
Source: Exall Resources Limited |
