TORONTO – EXALL RESOURCES and SOUTHERN STAR RESOURCES have entered into a merger agreement to create a new gold exploration company named GOLD EAGLE MINES LTD. Ownership in the new company would be 53% Exall shareholders and 47% Southern Star investors.
The combination will consolidate the Gold Eagle claims 6.0 km north of Red Lake, Ont. Exall and Southern Star are equal partners in the claims at this time. The property hosts a former producer, developed by Gold Eagle Mines, the predecessor of Exall. The mine produced 40,000 oz of gold between 1937 and 1941 when it was closed. Exall says its drilling program in the area has continued to intersect “vein hosted high-grade gold values and extensive gold-rich sulphide zones.” In March Exall reported drilling 291.39 g/t Au over 2.44 metres and 17.03 g/t over 17.12 metres at the Gold Eagle claims. In September, it reported more visible gold in the drill cores and additional short intersections of high grades.
Stephen Roman (from Exall) and Robert Cudney (from Southern Star) will be co-chairmen of the new Gold Eagle Mines. Also on the board are Derek Rance, Simon Lawrence and T. Douglas Willock of Exall and Terry MacGibbon, Brent Peters and an additional nominee from Southern Star. A search committee is also seeking a permanent CEO/director and CFO.
Additional information is available at www.Exall.com.