Exall Resources raises financing

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.