Barytex reorganizes, joins with Romanex; VSE-listed

Besides changing its name from Barytex Resources, the company has announced a change of control and a rollback of one new share for every four old shares. It has also amalgamated with a private company, Romanex Resources, giving the new company total ownership of the Mel zinc-lead-barite property in the Yukon.

Preliminary reserves there are estimated at 5.2 million tonnes grading 7.86% zinc, 2.09% lead and 48.89% barite. Breakwater Resources (TSE) retains a 5% net profits interest in the property and can back in for a 15% participating interest on completion of a positive feasibility. Romanex received 832,782 free trading shares and four million escrowed shares in the new company which now has about 8.9 million shares outstanding. Including a private placement of 1.75 million shares to Sutton Resources (VSE) at 28 cents, Barytex has about $740,000 in working capital. Sutton has a right of first refusal to participate in any future placements in order to maintain its 20% interest and can earn a 50% interest in any of the company’s properties by completing a final feasibility study and arranging financing. Barytex President John Nugent said the company must spend at least $200,000 on the Mel property this year, according to the agreement with Breakwater. Work will be concentrated outside the known mineralized zones and will include line-cutting, geochemical tests, geological mapping and trenching.