Ontex Resources Limited

Ontex Resources Limited

June 03, 2009 12:33 ET

Ontex Resources Limited Announces Executive Appointments, Proposed Private Placement and Rescheduling of Annual Meeting

LONDON, ONTARIO--(Marketwire - June 3, 2009) -


Ontex Resources Limited (the "Company") (TSX:ONT) is pleased to announce that J. Patrick Sheridan Jr. has been appointed as President and Chief Executive Officer of the Company. In connection with Mr. Sheridan's appointment, Gary Conn has resigned as Chief Executive Officer of the Company and continues as Chairman, Chief Operating Officer and Treasurer of the Company and John Thompson has resigned as President of the Company. All management changes are effective immediately.

"Patrick's appointment and the proposed private placement are important developments in Ontex's continuing evolution," said Mr. Conn. "We appreciate the contributions that the team has made to bring this deal to fruition."

Mr. Conn has served as a director and/or officer of the Company since 1998. Mr. Sheridan is currently the Chief Executive Officer of Guyana Goldfields Inc. and President and Chief Executive Officer of Coronation Minerals Inc.

The Company is also pleased to announce a non-brokered private placement to raise gross proceeds of up to $5,000,000 comprised of up to 12,500,000 flow-through common shares ("FT Shares") of the Company at a price of $0.20 per FT Share and up to 12,500,000 non-flow-through units ("Units") at a price of $0.20 per Unit. Each Unit shall be comprised of one common share and one common share purchase warrant ("Warrant"). Each Warrant shall be exercisable for one common share at a price of $0.35 per Warrant for a period of 18 months. Insiders of the Company may purchase up to 25% of the private placement.

The Company proposes to issue up to 500,000 finder's warrants ("Finder's Warrants") in connection with the private placement. Each Finder's Warrant shall be exercisable for one Unit at a price of $0.20 per Finder's Warrant.

Completion of the private placement remains subject to regulatory and shareholder approval.

The Company intends to seek shareholder approval for the proposed private placement at its forthcoming shareholders meeting ("Meeting") which is being rescheduled from June 25, 2009 to July 3, 2009. At the Meeting, the following persons will be nominated to be elected as directors of the Company: Gary Conn, Denis Crane, Alan Ferry, Robert Montemarano and J. Patrick Sheridan Jr. Messrs. Conn, Crane and Montemarano are existing directors of the Company. Mr. Ferry is an independent business person and was formerly the Vice President, Metals and Minerals, a mining analyst and a mining corporate finance specialist for Dominick & Dominick Securities Inc.

The proceeds from the sale of the FT Shares will be used for further exploration of the Company's properties and the proceeds from the sale of the Units will be used for general working capital purposes.

The Company intends to file and mail an amended management information circular in connection with the Meeting shortly.

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the Company's future financing plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks associated with the proposed private placment as well as those risk factors discussed in the Company's Annual Information Form for the year ended December 31, 2008, available on www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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