Exall Resources and Southern Star Resources have signed an agreement allowing Southern Star to earn a 50% interest in Exall's Gold Eagle mine near Red Lake, Ont. The mine is a former gold producer, and produced 40,000 ounces from 1937 to 1941. The property is bounded to the east by Goldcorp's Cochenour mine and on the north by the former McKenzie Red Lake mine, also controlled by Goldcorp.
Southern Star has agreed to make cash payments totalling $160,000 and issue 3 million common shares over a three-year period. It will also spend $2 million on the property over the same period. After Southern Star completes its obligations, the company will own the property equally with Exall. The two companies plan to complete a definitive operating agreement by Nov. 15, 2002.
More information on Exall is available at www.exall.com or by calling Stephen G. Roman at 416-368-3949.