The Board of Directors of Lovitt Resources Inc., (“the Company”, TSXV: LRC) is pleased to announce, that it has closed a non brokered private placement of 1,250,000 units for gross proceeds of $500,000.
Each Unit placed consists of one common share and one non-transferable share purchase warrant with one full warrant entitling the holder to purchase one additional common share of Lovitt at a price of $0.55 for a period of six months following the closing of the private placement.
As compensation for the placement of the Units, finder’s fees were paid in cash commissions with the finder’s opting to take their cash commissions in Units resulting in 7,500 Units identical to the Units placed in the private placement being issued to finders.
All Units issued to subscribers and finder’s and shares acquired by the subscribers on the exercise of warrants will be issued with hold periods expiring on September 3, 2012.
The net proceeds raised from the placement will be used on its Wenatchee properties by Lovitt as follows: (1) 400,000 is allocated to 2,000 meters of diamond drilling; (2) $75,000 is allocated for working capital; and (3) $25,000 is allocated for contingencies and issue expense.