NEWS ROUNDUP — Ontex plans rights offering

To finance work at its Brookbank gold property near Beardmore, Ont., Ontex Resources (ASE) plans to make a rights offering. In so doing, the junior hopes to raise $835,000.

Each Ontex shareholder will receive one right, eight of which can be redeemed for one unit at 60 cents. Each unit will consist of one share and one

purchase warrant. A warrant plus 80 cents can be redeemed for one share over a

2-year period.

Ontex has also exercised rights under an agreement with Metalore Resources (TSE) dated July 1, 1981. Specifically, it has submitted a detailed program with respect to future development of Brookbank, and granted Metalore a 60% undivided leasehold interest.

Ontex will operate the program, under which Metalore is required to contribute its 60% proportionate share of the costs. If the latter does not contribute to the cost of the program, it will have its interest decreased by 1% for every $100,000 which it does not pay within 45 days of invoicing.