LITHIC RECEIVES $1.3 MILLION FROM WARRANT EXERCISES
April 27, 2007
Lithic Resources Ltd. (LTH-TSX Venture) (the “Company”) is pleased to announce that all 3.728 million share purchase warrants issued as part of its April 2006 private placement financing have been exercised with total proceeds to the Company of $1,304,800. The warrants had an exercise price of $0.35, which converted to $0.50 on April 26, 2007, and expired on April 26, 2008.
The exercise of these warrants has increased the Company’s cash position to approximately $5.2 million and leaves it well-financed to advance its Crypto zinc project in Utah where Cyprus Minerals estimated a historical resource of 5.4 million tonnes of sulphide mineralization grading 8.68% zinc and a further 2.8 million tonnes of near surface oxide mineralization grading 7% zinc. This historical estimate was made prior to the implementation of NI43-101 standards, does not conform to those standards and should not be relied on as being indicative of a resource or a reserve with demonstrated economic viability. However, it is believed by the Company to be relevant and a reliable indication of the mineral potential of the property.
The Company intends to carry out a 10,000 metre program of drilling at Crypto aimed mainly at expanding known mineralization, which is open in most directions, and leading to an updated resource estimate. Additional drill targets include the extensions of high grade silver-lead-zinc mineralization at the formerly producing Utah Mine, geophysical anomalies identified in 2006 that could represent a new zone of Crypto-style zinc mineralization and deep porphyry-style molybdenum mineralization encountered in past drilling. The Company is currently in discussions with several drilling contractors that are interested in this job because of its size and convenient location in Utah.
The Company has elected to terminate its option on the Stoke Mountain property in Quebec. It continues to search for other base metal projects to add to its portfolio, both advanced situations as well as earlier stage ones for its project pipeline.
For further information please contact Chris Staargaard at 604-687-7211.
LITHIC RESOURCES LTD.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.