Touchstone Resources Ltd.

Touchstone Resources Ltd.

March 30, 2006 08:30 ET

Touchstone Completes Private Placement Financing of US$1.5 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2006) - Touchstone Resources Ltd. (TSX VENTURE:TCH.U) (the "Company") has completed its brokered private placement, that was announced on February 22, 2006, with Canaccord Capital Corporation ("Canaccord") for gross proceeds of US$1.5 million, which includes proceeds of US$500,000 from the exercise of the over-allotment option by Canaccord. The Company issued 15,000,000 units at the price of US$0.10 per unit with each unit comprised of one common share and one share purchase warrant. Each warrant entitles the holder to purchase a further common share of the Company at the price of US$0.20 until March 29, 2008.

Canaccord received a cash commission of US$120,000 which consists of 8% of the proceeds of the offering. Also, Canaccord has been issued Agent's Warrants in an amount equal to 10% of the number of units sold under the private placement. The Agent's Warrants will be exercisable at US$0.10 until March 29, 2008. Canaccord also received Corporate Finance Units in an amount equal to 7 1/2% of the first 10,000,000 units sold and 5% of the 5,000,000 units comprising the over-allotment option, each Corporate Finance Unit having the same terms as the units sold under the private placement.

All securities are subject to a four month hold period in Canada expiring on July 30, 2006.

The proceeds of the brokered private placement will be used to drill identified targets in the North Dakota leases and for general corporate purposes.

On behalf of the Board


Mark A. Bush, President

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Touchstone Resources Ltd.
    Mark Bush
    (713) 739-7695