Ontex raises exploration funds; court scheduled to hear

To raise funds for exploration on its Brookbank gold property near Beardmore, Ont., Ontex Resources (ASE) has reached an agreement-in-principle for a private placement of 500,000 units to a private corporation. The company purchasing the units will be incorporated by Osama Eissa.

Each unit, priced at $1.47, will consist of one common share of Ontex and one warrant exercisable at $1.47 for six months.

Eissa has also agreed to purchase one share on the market for every share issued under the private placement and, before exercising a warrant, Eissa will be required to purchase an additional common share on the market. During the week of Jan. 11-15, the Court of Appeal of Ontario will hear Metalore Resources’ (TSE) appeal of Justice Montgomery’s 1990 decision awarding the Brookbank deposit to Ontex.