Work program slated to begin at Brookbank — Corporate transactions end legal dispute that stalled project

Having obtained shareholder and regulatory approval, Ontex Resources (ONT-A) has completed its amalgamation with privately held Faymar Gold Mines and set the stage for ongoing exploration of the Brookbank gold deposit near Geraldton, Ont.

Ontex, now controlled by Fortune Minerals (FT-T), has secured a 100% interest in the Brookbank gold deposit from Metalore Resources (MET-T), which retains a 1% net smelter return royalty after recovery of capital costs.

Work on the project had been stalled by a lengthy legal dispute between Ontex and Metalore. However, the recent agreement puts an end to the legal wrangling and ushers in a new round of exploration aimed at boosting and upgrading the current mineral inventory of 1.4 million tons grading 0.26 oz.

gold per ton. The deposit is still open along strike and at depth.

Ontex holds an option to earn up to a 60% interest in the adjacent Cherbourg-Fox Ear property through exploration expenditures of up to $1 million over four years. The junior also has an option to earn a 70% interest from Metalore in 406 staked claims in Walters and Leduc twps. (east of the Cherbourg-Fox Ear property) by spending $400,000 on exploration over four years.

The Ontex board now consists of Salvatore Fuda, Ross McGroarty and Robert Montemarano — all former directors of Ontex; George Chilian of Metalore; and Robin Goad, Gary Conn and George Doumet from the Fortune/Faymar group.

Ontex has $2.9 million with which to explore Brookbank and its adjacent properties. Drilling will resume once all technical information has been reviewed and compiled.