Gold Reach Resources Ltd. (GRV: TSX-V) (the "Company") is pleased to announce the closing of its non-brokered private placement offering (the "Offering) of up to 4,000,000 flow-through units (each a "FT Unit") at a price of $0.55 per FT Unit and up to 1,000,000 non-flow-through units (each an "NFT Unit") at a price of $0.42 per NFT Unit to raise gross proceeds to the Company of up $2,620,000, as originally announced in the Company’s news release dated December 6, 2010.
A total of 2,884,345 FT Units and 475,000 NFT Units were issued on December 31, 2010, raising gross proceeds to the Company of $1,785,889.75.
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 common share purchase warrant exercisable to acquire an additional non-flow-through common share at a price of $0.60 per share for a period of two years from the date of issuance, being December 31, 2010 (the "Closing Date"). Each NFT Unit is comprised of one non-flow-through common share of the Company and one common share purchase warrant exercisable to acquire an additional non-flow-through common share at a price of $0.60 per share for a period of two years from the date of issuance, being December 31, 2012.
The following subscribers are Insiders of the Issuer: Conrad Swanson subscribing for 500,000 FT units and 100,000 NFT units; Kinder Deo subscribing for 60,000 FT units; Pat Glazier subscribing for 150,000 FT units; and James Pettit subscribing for 55,000 FT units.
Finder’s at arm’s length to the Company received a finder’s fee paid in warrants (the "Finder’s Warrants") equal to 7% of number of FT Units and NFT Units placed and a 7% cash consideration for the proceeds raised via the Offering. A total of 141,564 Finder’s Warrants were issued and a total of $75,084.80 was paid in commission.
If, at any time after the Closing Date, the common shares trade on the TSX Venture Exchange at or above a weighted average trading price of $1.00 per share for a period of 10 consecutive trading days, the Company shall have the option to request that all Warrant holders exercise their Warrants by providing Notice that they have 30 days to exercise their Warrants, and any unexercised Warrants after the expiry of the 30th day following such Notice shall expire with no further rights and privileges attached thereto.
All securities issued in the Offering will be subject to a hold period under applicable securities laws expiring on May 1, 2011.
In addition the Company announces that further to its stock option plan it has granted an aggregate of 380,934 stock options to various directors, officers, employees and consultants of the Company. The options are exercisable at $0.50 per share for a term of five years from the date of grant.
About Gold Reach:
Gold Reach Resources Ltd. is a Canadian exploration company actively involved in the exploration of its newly acquired Auro Claims adjacent to Richfield Ventures’ gold discovery in central BC and the development of the Seel and Ox Lake projects, a 19,105 hectare copper-gold-molybdenum-silver project located 120 kilometres south of Houston, BC and eight kilometres east of the producing copper-molybdenum Huckleberry Mine.
ON BEHALF OF THE BOARD OF DIRECTORS
Conrad Swanson, President
For further information, please contact:
Gold Reach Resources
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.