October 31, 2012, Vancouver, British Columbia - Gold Reach Resources Ltd. (the “Company”) (TSX-V:GRV) is pleased to announce that it has closed the non-brokered flow through private placement of 811,075, flow through units (each a “ FT Unit”) at a purchase price of $1.75 per FT Unit. The private placement raised gross proceeds of $1,419,381.25. Each Unit consists of one flow through common share (“FT Common Share”) of the Company and one non-transferable non flow through common share purchase warrant (“Warrant”). Each Warrant will entitle the holder to acquire one additional common share (a “Warrant Share”) of the Company at an exercise price of $2.50 per Warrant share for a period of one year from the closing date of the private placement. If the Company’s common shares trade at or above a weighted average price of $3.00 per share for 10 consecutive trading days, the Company may give notice that each warrant may expire in 30 days.
The Company paid a finder’s fee of $19,950 cash and 11,400 finder warrants to Haywood Securities Inc. and $12,862.50 cash and 7,350 finder warrants to Raymond James Ltd.
All of the securities issued pursuant to the private placement are subject to a minimum four month hold period which expires on March 1, 2013 pursuant to applicable Canadian securities laws.
The proceeds of this private placement will be used for the purpose of carrying out the exploration programs on the Company’s British Columbia Ootsa property.
On another matter, Gold Reach is pleased to announce that Don Mosher of B&D Capital Partners has been engaged by the Company for International Investor relations. In consideration of the services to be provided, the Company has agreed to $5,000 per month on a 12 month renewable contract.
B&D Capital Partners is a corporate finance consulting company that provides strategic advice and creative solutions for companies facing capital access and structure issues. B&D Capital’s main focus is on discovering undervalued public companies who offer extra value and opportunities for the investor but at this time need assistance in raising their corporate profile within the investment market.
The Company also announces that further to its stock option plan, it is granting options to buy an aggregate of 112,950 shares to various directors, officers, employees, and consultants to the Company. The options are exercisable at $1.41 per share for a term of five years from the date of grant.
ON BEHALF OF THE BOARD OF DIRECTORS
“Conrad Swanson” Chairman
For further information, please contact:
Gold Reach Resources Telephone: 604-718-5454
Toll Free: 888-500-4587
Safe Harbour Statement: The Company relies upon litigation protection for “forward-looking statements.”
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.