The Board of Directors of Lovitt Resources Inc. (“the Company”; TSXV: LRC) is pleased to announce, subject to regulatory approval, a non-brokered private placement of up to 2,000,000 Units at 40 cents per Unit for gross proceeds of $ 800,000. Each Unit shall consist of one common share and one non- transferable warrant to purchase one additional common share for 55 cents. The warrants shall have a term of six months and one day from the closing date. Proceeds of the issue, after setting aside 25% of the amount raised for issue expense and working capital, will be used to conduct 3,000 meters of diamond drilling on the Matthews Lease about 1.7 miles southeast of the Lovitt Mine property. A finder’s fee may be paid on any portion of funds raised, as long as such compensation is in accordance with policies currently in effect at the TSX Venture Exchange.
Subject to the exercise of warrants from this financing, or an additional financing, a further 3,000 meter diamond drill program is contemplated later this year at the Lovitt Gold Mine to test for mineralization below historic workings and to the southeast on strike with known historic gold intersections on the Wenatchee Gold Belt.
The Lovitt Gold Mine, located in central Washington State, suspended operations in 1966 after producing 420,000 oz of gold and 620,000 oz of silver over the previous sixteen year period, with an average grade of 0.40 oz of gold per ton (or 13.7 gm Au/t). The directly adjoining Cannon Mine to the northwest produced 1,200,000 oz of gold and 1,900,000 oz of silver between 1984 and 1995 at an average grade of 0.30 oz Au/ton (or 10.3 gm Au/t). During their respective periods of operation, both Wenatchee mines were either 1st or 2nd in annual gold production produced from underground gold mines in the USA.
By Order of the Board of Directors
For more detailed information, please refer to the website of the Company at: http://www.lovittresources.com eMail: email@example.com or call the Company at (509)668-8170. For current activity check: https://twitter.com/#!/LovittResources