In northeastern Ontario, development work continues on schedule at the Hislop Twp. gold project of Exall Resources (EXL-T) and Glimmer Resources (GME-V).
The former has reached an agreement in principle with Standard Bank of London for a $5-million gold loan. The loan and hedging facility, still subject to the bank’s due-diligence investigations, will provide funds over an 8-month period. It can be repaid over the remainder of the 30-month term.
Glimmer, which was unable to fund its 40% share of development expenses in August and September, has allowed
its interest to be diluted to 33%. Glimmer requires $352,000 for its October payment and estimates it will need just over $1 million before the project begins to generate cash flow, in December. It continues to search for funding for its reduced share of the program.
If Glimmer’s interest falls below 15%, Exall can trade a 3% net smelter return for the working interest, or buy out Glimmer for $1.5 million.
Be the first to comment on "Exall Resources raises financing"