Exall runs into trouble

Exall Resources (EXL-T) has hit a last-minute snag in its attempt to enter Romania’s petrochemical industry.

The company’s US$10-million acquisition of a 53% shareholding in Oltchim, Romania’s largest petrochemical company, has been postponed following a court injunction that will last until completion of an independent review of an incident that took place at Oltchim in early August. No further details were available.

Exall was declared the winning bidder for the 53% 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 in mid-August, expecting to close the deal. The company initially anticipated a closing in January.

Exall operated the Glimmer gold mine in Matheson, Ont., where operations were recently suspended as a result of high costs. The mine is a joint venture with Glimmer Resources (GME-V).