Queries ConRex moves to merchant banking

I am writing to you to find out what happened to the assets of Consolidated Rexpar Minerals which has become part of merchant banking group. When I bought the stock, “ConRex” was 46.9% owned by Denison Mines and it had a uranium prospect in the Birch Island area of British Columbia, 81 miles north of Kamloops.

The company had outlined three zones with estimated reserves standing at 1,228,400 tons grading 1.546 lb uranium oxide per ton. R.B., Delray Beach, Fla.

After being sold (N.M., June 29/87) to Gornitzki, Thompson & Little Co., a Toronto-based merchant banking firm, Consolidated Rexpar Minerals is undergoing a substantial reorganization process. According to Gornitzki direc tor John Thompson, the Birch Island claims did not include any fixed assets when his company bought them from Denison Mines of Toronto.

“Since Denison apparently considered the property uneconomic, it sold all the real estate at Birch Island before abandoning the area.”

After acquiring the Birch prospects from Denison, Gornitzki, Thompson then sold them to vse- listed Gold Ventures for $722,500.

However, Gornitzki has held on to the so called Noble gold claims which were optioned and then abandoned by Placer Development.

On Sept 16, ConRex shareholders were asked to approve a corporate reorganization that will redirect the company from resource development into merchant banking in association with Gornitzki, Thompson & Little.

The company will also change its name to ConRex Corporation.

According to a recent press release, ConRex plans to raise between $1.1 million and $2.1 million to provide merchant banking services to established junior industrial and resource companies too small for conventional financings.

“Typically, investments by Conrex will be in the $200,000 to $300,000 range and will generally not be venture capital transactions where there is a product, market or management risk,” the release says.