TORONTO, ONTARIO--(CCNMatthews - Oct. 11, 2006) - Ontex Resources Limited (TSX:ONT) announced today that it has raised gross proceeds of approximately $1,337,750.00 pursuant to a rights offering which expired at 5:00 p.m. (Eastern Time) on October 4, 2006. A total of 13,377,505 common shares were issued at an issue price of $0.10 per share to certain of Ontex's shareholders resident in the provinces of British Columbia, Alberta and Ontario and to two stand-by purchasers, Leader Capital Corp. and United Bolero Development Corp.
Ontex intends to use the gross proceeds from the offering to fund further exploration on its Brookbank property and for general and administrative purposes.
John Thompson, Ontex's geologist, has recommended that the peripheral area around Ontex's main Brookbank Gold Deposit is a viable target with potentially significant areas with grades in the 3.0 to 4.5 g/t range that should be drilled to firm up a mineral resource. In his report dated April 28, 2006 (a copy of which may be viewed at www.sedar.com), Mr. Thompson has stated that there is an area to the east of the main Brookbank Deposit, between lines 200 m W and 100 m E to a depth of about 300 meters that could host 30,000 to 50,000 ounces of gold. Mr. Thompson's report further states that drill holes in this area returned composite values of 4.0 g/t over 2.9 meters true width (87-B56), 4.9 g/t over 1.9 meters (B-99-07) and 4.75 g/t over 1.5 meters (M-17); and that also on the west side of the main Brookbank Deposit is an area between lines 700 m W and 550 m W to a depth of 300 meters, where drill holes such as 4.8 g/t over 3.05 meters true width (B-99-10) and 4.4 g/t over 3.2 meters have not been adequately tested and additional resources can probably be developed.
Ontex has engaged Mr. Thompson's company as a consultant specifically to identify a suitable joint venture partner. Pursuant to Mr. Thompson's consulting agreement, Ontex will pay Mr. Thompson's company consulting fees of $104,000 per annum over a one year term and a $100,000 bonus in the event that Ontex enters into a formal joint venture agreement with a suitable joint venture partner identified by Mr. Thompson, on terms acceptable to Ontex's board of directors.
FOR FURTHER INFORMATION PLEASE CONTACT:
Ontex Resources Limited
Gary Conn
Executive Vice-President
(519) 455-8127
Email: info@ontexresources.com
Website: www.ontexresources.com
0 members recommend this.
