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"
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.