Echo Energy Canada Inc.
TSX VENTURE : EEI

Echo Energy Canada Inc.

March 20, 2006 17:08 ET

Echo Energy Canada Inc. Acquires 4,509,833 Common Shares of Ontex Resources Limited in Debt Settlement

TORONTO, ONTARIO--(CCNMatthews - March 20, 2006) - Echo Energy Canada Inc. (TSX VENTURE:EEI) announced that it has acquired 4,509,833 common shares of Ontex Resources Limited (TSX:ONT). Ontex issued the shares to Echo in a private transaction pursuant to a debt settlement agreement between the parties in full and final settlement of $811,770 of debt comprising cash advances by Echo. The shares were issued at an assigned value of $0.18 per share.

Prior to the acquisition, Echo held no securities of Ontex. Immediately after the acquisition, Echo held 4,509,833 common shares of Ontex, representing 8.4% of the outstanding common shares of Ontex. Parties deemed to be acting jointly and in concert had direct and indirect ownership and control over 4,418,204 common shares of Ontex, representing 8.3% of the outstanding common shares of Ontex, both prior to and immediately after the acquisition. Echo does not currently intend to acquire further securities of Ontex, however, it may acquire securities of Echo in the future.

A material change report in connection with the transaction will be filed at www.sedar.com. The material change report could not be filed 21 days prior to the completion of the transaction as the transaction was not approved by an independent committee of the board of directors of each of Echo and Ontex until the date of closing.

Further particulars of the foregoing transaction are available in the corresponding report filed in accordance with National Instrument 62-103 on SEDAR (at www.sedar.com). A copy of the report is also available by contacting Gary Conn, President, at ph. (519) 455-8127 or Salvatore Fuda, Chairman, at (416) 360-4031.

Neither the TSX Venture Exchange nor any securities regulatory authority has approved or disapproved of this news release.

Contact Information

  • Echo Energy Canada Inc.
    Gary Conn
    President
    (519) 455-8127
    or
    Echo Energy Canada Inc.
    Salvatore Fuda
    Chairman
    (416) 360-4031