Exall runs into trouble in Romania

Plans by Stephen Roman’s Exall Resources to become a major player in Romania’s petrochemical industry are hitting a major, last-minute snag.

The company reports that its US$10-million acquisition of a 53% shareholding in Oltchim, Romania’s largest petrochemical company, has been postponed.

Exall was declared the winning bidder for the stake in November 2000. Since then, the company had raised the money for the purchase, hired new personnel and signed a preliminary agreement with consulting giant SNC-Lavalin to oversee work in Romania.

Exall representatives travelled to Bucharest this week, expecting to close the deal on Aug. 23. The company initially anticipated a closing in January.

Exall says the courts in Bucharest have issued an injunction that prevents the cancellation of the Share Sale and Purchase Agreement by Romania’s State Authority for the Privatization and Management of State Shareholdings.

The company says this injunction will continue until an independent technical review has been completed concerning an industrial incident that took place at Oltchim on Aug. 8.

Exall says three key supply contacts with Oltchim have been agreed, completed and delivered to Exall.

Prior to its foray into the oil and gas sector, Exall was best known for its operation of the Glimmer gold mine in Matheson, Ont., where mining was suspended in May, due to high costs. The mine is a joint venture between Exall and Glimmer Resources (GME-V).