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Ontex Resources Limited completes private placement
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES/ LONDON, ON, Aug. 24...
About this update from Gold Springs Resource Corp.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE\nSERVICES/\n\n\nLONDON, ON, Aug. 24 /CNW/ - Ontex Resources Limited ("Ontex" or the\n"Company") (TSX: ONT) is pleased to announce that it completed today its\npreviously announced non-brokered private placement for gross proceeds of\n$5,000,000 through the sale of 12,500,000 flow-through common shares ("FT\nShares") of the Company at a price of $0.20 per FT Share and 12,500,000\nnon-flow-through units ("Units") of the Company at a price of $0.20 per Unit.\nEach Unit was comprised of one common share and one common share purchase\nwarrant ("Warrant"). Each Warrant is exercisable for one common share at a\nprice of $0.35 per Warrant for a period of 18 months.\n\n\nGross proceeds from the sale of the FT Shares will be used for further\nexploration of the Company's properties and the proceeds from the sale of the\nUnits will be used for general working capital purposes.\n\n\n"We are pleased to have completed this financing with a broad range of\nsignificant support from institutional and retail investors," said J. Patrick\nSheridan Jr., the Company's President and Chief Executive Officer. "The\nCompany continues to aggressively explore the Brookbank deposit, and currently\nhas two drills operating. In addition, a stripping and trenching program has\nbeen completed on an area east of the Brookbank gold property, which up until\nthis point has been unrecognized as a potential exploration target. An initial\ndrill program is being designed for this area. The Company will continue to\nexplore areas of known mineralization as well as areas outside of known gold\nresources."\n\n\nInsiders of the Ontex purchased approximately 4.9% of the private\nplacement. The Company issued 500,000 finder's warrants ("Finder's Warrants")\nto Primary Capital Inc. ("Primary") in connection with the private placement.\nEach Finder's Warrant is exercisable for one Unit at a price of $0.20 per\nFinder's Warrant. In addition, the Company paid a cash finder's fee of\n$150,000 to Primary and $3,100 to Octagon Capital Corporation.\n\n\nThe securities issued in connection with the private placement are\nsubject to a hold period which expires on December 25, 2009.\n\n\nAbout Ontex Resources Limited\n\n...