VANCOUVER, June 9, 2014 /CNW/ - Gold Reach Resources Ltd. (the "Company") (TSX-V:GRV) is pleased to announce that it has closed the first tranche of the non-brokered flow through private placement of 999,000, flow through units (each a "FT Unit") at a purchase price of $0.72 per FT Unit. The private placement raised gross proceeds of $719,280. Each Unit consists of one flow through common share ("FT Common Share") of the Company and one-half of a non‑transferable non flow through common share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder to acquire one additional common share (a "Warrant Share") of the Company at an exercise price of $0.80 per Warrant Share for a period of 24 months from the closing date of the private placement. If the Company's common shares trade at or above a weighted average price of $1.30 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 $57,542.40 cash and 79,920 finder warrants to Secutor Capital Management Corp. Each finder warrant will be exercisable at a price of $0.72 per share for a period of 24 months.
All of the securities issued pursuant to the private placement are subject to a minimum four month hold period which expires on October 4, 2014 pursuant to applicable Canadian securities laws.
The gross proceeds raised from the issuance of the FT Units will be used by the Company to incur exploration expenditures on the Company's properties in British Columbia and will constitute "Canadian exploration expenses" and "flow through mining expenditures" as defined in the Income Tax Act (Canada).
ON BEHALF OF THE BOARD OF DIRECTORS
Shane Ebert, President/Director
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, S. Ebert direct line: 250 964-2699, Toll Free: 888-500-4587, http://goldreachresources.com; Or B&D Capital Partners, Don Mosher, Telephone: 604-685-6465, Don@bdcapital.com