LITHIC CLOSES NON-BROKERED $932,000 FINANCING
April 27, 2006
Lithic Resources Ltd. (LTH-TSX Venture) (the “Company”) is pleased to announce that it has closed the non-brokered private placement previously announced in Stockwatch on March 20, 2006 and April 4, 2006. The Company issued 3,728,000 units at $0.25 per unit for gross proceeds of $932,000. Each unit consists of one common share of the Company and one non-transferable share purchase warrant. Each warrant entitles the placee to acquire one additional common share of the Company for a period of twenty-four months after the closing at an exercise price of $0.35 during the first year and an exercise price of $0.50 during the second year.
The units issued on the offering are subject to a four-month hold period expiring on August 26, 2006. In accordance with the policy of the TSX Venture Exchange, the Company has agreed to pay a finder’s fee of 100,000 common shares of the Company to R. Dhir in return for the introduction of subscribers to the Company. It has also agreed to pay a cash commission of $4,500 to the Société d'investissement dans la diversification de l'exploration (SIDEX), equivalent to 3% of the funds provided by it.
The proceeds of the private placement will be used to initiate exploration at the Company’s advanced Crypto zinc project in Utah and its Stoke Mountain base metal project in Quebec as well as for working capital.
The placement is subject to final acceptance by the TSX Venture Exchange.
For further information please contact Chris Staargaard at 604-687-7211 or visit www.lithicresources.com.
LITHIC RESOURCES LTD.
President and CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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