Ontex Resources Limited announced its intention, subject to regulatory approval, to undertake a normal course issuer bid (the “Bid”) through the facilities of the Toronto Stock Exchange (the “TSX”), and purchase up to 4,000,000 of its common shares, representing up to approximately 4.38% of its issued and outsanding shares as of November 3, 2008.

Purchases of common shares under the Bid will be made at market prices and otherwise in accordance with the rules of the TSX. Purchases may commence on the date that is two trading days after the latest of (i) the date of acceptance by the TSX of Ontex’s notice of intention in final executed form; and (ii) the date that Ontex issues a press release with respect to the approval of the Bid.. Purchases may occur during the 12 month period thereafter, unless terminated on such earlier date as the Company may complete its purchases. All common shares purchased under the Bid will be cancelled. Ontex has not purchased any of its common shares in the last 12 months.

To the knowledge of Ontex, no senior officer or director of Ontex or any of their associates currently intends to sell any common shares under the Bid. However, sales by such persons through the facilities of the TSX may occur during the period of the Bid where such sales are due to personal or business circumstances of such persons unrelated to purchases under the Bid.

“We believe that the underlying value of the Company may not be reflected in the market price of its common shares during the current market conditions, and the Bid will allow Ontex to purchase its common shares if, in the opinion of management, purchases can be made on terms that can contribute to enhancing shareholder value,” said Gary Conn, Chairman and Chief Executive Officer of Ontex.

Ontex Resource Limited is a junior resource company listed on the Toronto Stock Exchange under the symbol “ONT” engaged in gold exploration principally on its Brookbank Gold property in northern Ontario.

This entry was posted by Gold Mining on Wednesday, November 5th, 2008 at 1:45 am and is filed under Mining Stock. Tags: Acquisition, bank, Brookbank, Canada, Company, DAVID AP BROOKBANK AND ASSOCIATES (ARCH, Gary Conn, Gold, gold exploration, Managem, North, Northern Ontario, Ontario, Ontex Resource Limited, Ontex Resources Limited, PROPERTY, Resources, Stock, The Toronto Stock Exchange, Toronto, Toronto Stock Exchange. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.