May 14, 2012: Vancouver, British Columbia: Gold Reach Resources Ltd. (the “Company”) (GRV: TSX-V) announces it has arranged a non-brokered flow-through private placement units offering (“FT Units”) of up to 250,000 FT Units, raising gross proceeds of $150,000. Each FT Unit, priced at $0.60 per each FT Unit, is comprised of one common share of the Company, intended to qualify as a flow-through share under the Income Tax Act (Canada), and one non-transferable common share purchase warrant (“NFT Warrants”) entitling the holder to purchase one additional non-flow through common share of the Company at an exercise price of $0.75 per share for a period of one year from the closing date of the FT Unit offering.
Each Warrant is subject to accelerated expiry provisions such that if at any time after the date of Closing of the private placement, the Company’s common shares trade on the TSX Venture Exchange at or above a weighted average trading price of $1.00 per share for 10 consecutive trading days, the Company may give notice to the holders that each Warrant will expire 30 days from the date of providing such notice.
The proceeds of the private placement will be used for the purpose of carrying out the exploration programs on the Company’s Canadian properties.
The foregoing is subject to regulatory approval.
ON BEHALF OF THE BOARD OF DIRECTORS
“Conrad Swanson” Chairman
For Further information, please contact:
Toll Free: 888-500-4587
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.
Safe Harbor Statement: The Company relies upon litigation protection for “forward-looking statements.” The Company undertakes no obligation to update these forward- looking statements in the managements beliefs, estimates obligations or other factors should change.