Gold Reach Resources Ltd. has closed the non-brokered private placement unit offering 240,000 units, raising gross proceeds of $100,800 announced on Jan 24, 2011. The shares issued are subject to a four-month hold period expiring June 8, 2011.
The company further announces it has arranged an additional 800,000-unit non-brokered private placement offering to raise gross proceeds of $336,000. Each unit comprises one common share of the company at a subscription price of 42 cents per common share and one full warrant entitling the holder to purchase one additional common share of the company at an exercise price of 60 cents for a two-year period from the closing date of the unit offering. Proceeds will be used for general working capital.
Each warrant is subject to accelerated expiry provisions such that if at any time after the date of closing 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 in 30 days from the date of providing such notice. There is no finders fee in this transaction, the shares will be subject to a four month hold period expiring from the date of closing and is subject to acceptance by the TSX Venture Exchange.
As well, the company announces that further to it’s stock option plan it has granted an aggregate of 48,800 stock options to various directors, officers, employees and consultants of the company. The options are exercisable at 50 cents per share for a term of two years from the date of grant.