Alberta-listed Orex Resources has raised $310,000 in a rights offering and intends to raise $1 million more in an exchange offering this month.
The money will be used to finance work on three interesting, grass roots gold properties: One in the Pickle Lake area of Ontario, one near Elko, Nev., and one near Keno Hill, Yukon.
Drilling will start this month on the Yukon property where work last year confirmed the existence of gold and silver mineralization with grades ranging up to 0.109 oz gold per ton over 44 in and 98.42 oz silver over 50 in, according to Orex’s new president, Samuel Reed, of Toronto.
A 10,000-ft drill program is planned for the Pickle Lake property — long the crown jewel of the company, which used to be called Tex-U.S. Oil & Gas Inc. under Harry J. Hodge. Preliminary work is being planned for the Nevada p roperty which, according to Mr Reed has potential for an epithermal-type gold deposit.
The rights offering required holders to exchange four rights and 45 cents for a share in the company. Orex shares currently trade at about 65 cents .
The exchange offering, planned for this month, will be filed with the tse.
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