June 2, 2014: Vancouver, British Columbia: Gold Reach Resources Ltd. (the “Company”) (GRV: TSX-V) is pleased to announce a non-brokered private placement of up to 999,000 flow-through units (“FT Units”) and up to 500,000 non flow-through units (“NFT Units”) for gross proceeds of up to $1,044,280 (“Offering”).
Each FT Unit will be offered at $0.72 and will consist of one flow-through common share of the Company as defined in subsection 66(15) of the Income Tax Act (Canada) and one-half of a non flow-through common share purchase Warrant. Each NFT Unit will be offered at $0.65 and will consist of one common share of the Company and one whole non flow-through Warrant. Each whole Warrant will be exercisable into one common share of the Company at a price of $0.80 per share for a period of 24 months, subject to acceleration of the expiry date after the four month hold period in the event that the ten-day volume-weighted average trading price of the shares is greater than $1.30 per share.
The Company will pay to certain finders, including Secutor Capital Management Corp., a fee equal to 8% of the gross proceeds received by the Company from the sale of certain of the FT Units and NFT Units and will issue finder warrants (“Finder Warrants”) entitling certain finders to purchase that number of shares of the Company equal to 8% of the total number of NFT Units and FT Units sold pursuant to the Offering. Each Finder Warrant will be exercisable at a price of $0.72 per share for a period of 24 months.
The gross proceeds raised from the issuance of the FT Units will be used by the Company to incur exploration expenditures on the Company’s properties in British Columbia and will constitute “Canadian exploration expenses” and “flow through mining expenditures” as defined in the Income Tax Act (Canada). The net proceeds raised from the issuance of the NFT Units will be used by the Company for exploration and general corporate purposes.
The Company also reports that it is not proceeding with the private placement announced on March 25, 2014.
The transaction is subject to TSX Venture Exchange approval.
ON BEHALF OF THE BOARD OF DIRECTORS
“Shane Ebert”
Shane Ebert, President/Director
For Further information, please contact:
Telephone: 604-718-5454
S. Ebert direct line: 250 964-2699
Toll Free: 888-500-4587
http://goldreachresources.com
Or
B&D Capital Partners
Don Mosher
Telephone: 604-685-6465
Don@bdcapital.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This News Release contains forward-looking statements, which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "will", "may", "should", "expects", "plans", or "anticipates" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking-statements. Such uncertainties and risks may include, among others, that the Offering will not complete, actual results of the Company's exploration activities being different than those expected by management, delays in obtaining or failure to obtain required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdown and bad weather.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect the Company's current judgment regarding the direction of its business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law, the Company does not intend to update any forward-looking statements to conform these statements to actual results.