TORONTO, ONTARIO--(CCNMatthews - Oct. 11, 2006) - Ontex Resources Limited
(TSX:ONT) announced today that it has raised gross proceeds of
approximately $1,337,750.00 pursuant to a rights offering which expired
at 5:00 p.m. (Eastern Time) on October 4, 2006. A total of 13,377,505
common shares were issued at an issue price of $0.10 per share to certain
of Ontex's shareholders resident in the provinces of British Columbia,
Alberta and Ontario and to two stand-by purchasers, Leader Capital Corp.
and United Bolero Development Corp.
Ontex intends to use the gross proceeds from the offering to fund further
exploration on its Brookbank property and for general and administrative
purposes.
John Thompson, Ontex's geologist, has recommended that the peripheral
area around Ontex's main Brookbank Gold Deposit is a viable target with
potentially significant areas with grades in the 3.0 to 4.5 g/t range
that should be drilled to firm up a mineral resource. In his report dated
April 28, 2006 (a copy of which may be viewed at www.sedar.com), Mr.
Thompson has stated that there is an area to the east of the main
Brookbank Deposit, between lines 200 m W and 100 m E to a depth of about
300 meters that could host 30,000 to 50,000 ounces of gold. Mr.
Thompson's report further states that drill holes in this area returned
composite values of 4.0 g/t over 2.9 meters true width (87-B56), 4.9 g/t
over 1.9 meters (B-99-07) and 4.75 g/t over 1.5 meters (M-17); and that
also on the west side of the main Brookbank Deposit is an area between
lines 700 m W and 550 m W to a depth of 300 meters, where drill holes
such as 4.8 g/t over 3.05 meters true width (B-99-10) and 4.4 g/t over
3.2 meters have not been adequately tested and additional resources can
probably be developed.
Ontex has engaged Mr. Thompson's company as a consultant specifically to
identify a suitable joint venture partner. Pursuant to Mr. Thompson's
consulting agreement, Ontex will pay Mr. Thompson's company consulting
fees of $104,000 per annum over a one year term and a $100,000 bonus in
the event that Ontex enters into a formal joint venture agreement with a
suitable joint venture partner identified by Mr. Thompson, on terms
acceptable to Ontex's board of directors.
FOR FURTHER INFORMATION PLEASE CONTACT:
Ontex Resources Limited
Gary Conn
Executive Vice-President
(519) 455-8127
Email: info@ontexresources.com
Website: www.ontexresources.com
