The proceeds from the financing will be used for general corporate purposes and to cover legal fees associated with an on-going lawsuit against Metalore Resources (TSE).
Ontex has been involved in a lawsuit with Metalore for nearly three years in the hopes of regaining a gold property in northern Ontario. The Alberta-listed junior is seeking the return of the Brookbank gold property near Beardmore, Ont., or $500 million in damages. Last July, the court dismissed a counterclaim by Metalore against Ontex.
Reserves at the Brookbank deposit are estimated to be in the order of 1.3 million tons grading 0.3 oz gold per ton. Last year Hudson Bay Gold backed out of an option with Metalore which included the possibility of sinking a 1,800-ft shaft on the Brookbank property. The legal dispute has held up development at Brookbank and an end does not appear to be in site for at least another year.
Ross McGroarty, vice-president of Ontex, says his company’s main corporate focus remains the legal dispute with Metalore.
“The next step for us is to receive a fixed court date for the case to be heard,” McGroarty said. “Realistically we expect the court date to be sometime during the third quarter, possibly in September.”
Meanwhile, the company is keeping its other property interests in good standing and up to date with assessment work requirements.
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