VANCOUVER, July 20, 2016 /CNW/ - Gold Reach Resources Ltd. (the "Company") (TSX-V:GRV) announces that the Company has closed its non-brokered private placement and has issued 4,666,666, units at a purchase price of $0.15 per unit for gross proceeds of $700,000.
Each unit consists of one common share of the Company and one-half of one non‑transferable common share purchase warrant. Each warrant will entitle the holder to acquire an additional common share of the Company at an exercise price of $0.22 per share for a period of 3 years from the closing date of the private placement. If the Company's common shares trade at or above a weighted average price of $0.40 per share for 10 consecutive trading days, the Company may give notice that each warrant may expire in 30 days.
The Company paid finder's fees of $12,880 cash and 42,934 warrants.
The proceeds of the financing will be used to continue exploration on its British Columbia property and for general working capital.
In compliance with Canadian securities laws, all of the securities issued in connection with this closing are subject to a hold period expiring on November 20, 2016.
ON BEHALF OF THE BOARD OF DIRECTORS
President and Chief Executive Officer
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.
SOURCE Gold Reach Resources Ltd.
For further information: Telephone: 604-718-5454, Toll Free: 888-500-4587, firstname.lastname@example.org, http://goldreachresources.com; Don Mosher, Corporate Development, Telephone: 604-685-6465, Donm@goldreachresources.com