Gold Reach Resources Ltd. Announces Completion of Non-Brokered Private Placement and the Grant of Stock Options
27.06.2012 | Marketwire
VANCOUVER, 06/27/12 - Gold Reach Resources Ltd. (TSX VENTURE: GRV) ("Gold Reach" or the "Company") is pleased to announce that it has closed the non-brokered private placement of 1,100,000 units (each a "Unit") at a purchase price of $1.10 per Unit. The Private Company raised gross proceeds of $1,210,000. Each Unit consists of one common share ("Common Share") of the Company and one non-transferable common share purchase warrant ("Warrant"). Each Warrant will entitle the holder to acquire one additional common share (a "Warrant Share") of the Company at an exercise price of $1.40 per Warrant Share for a period of two years from the closing date of the Private Placement.The Company paid a finder's fee in cash of $13,860 to Haywood Securities Inc. and $45,540 to Canaccord Genuity Corp. in connection with the Private Placement. All of the securities issued pursuant to the Private Placement are subject to a minimum four month hold period which expires on October 27, 2012 pursuant to applicable Canadian securities laws.
The proceeds of this private placement will be used for the purpose of carrying out the exploration programs on the Company's British Columbia property and for general working capital.
On another matter, the Company announces that further to its stock option plan, it is granting options to buy an aggregate of 253,429 shares to various directors, officers, employees and consultants to the Company. The options are exercisable at $1.50 per share for a term of five years from the date of grant.
About Gold Reach Resources
Gold Reach Resources Ltd. is a Canadian exploration company with an experienced board and management team that is actively involved in mineral exploration in British Columbia. The company holds a 100% interest in the Ootsa Property, located adjacent to the producing Huckleberry Copper Mine, and containing the Seel and Ox porphyry systems. The Seel porphyry contains a NI 43-101 compliant resource containing 214.78 million tonnes grading 0.17% Cu, 0.13 g/t Au, 0.017% Mo, and 2.17 g/t Ag (0.33% Cu Eq) in the inferred category plus an additional 28.13 million tonnes grading 0.22% Cu and 0.21 g/t Au (0.40% Cu Eq) in the indicated category. The resource contains 805 million lbs. of Cu inferred plus 136 million lbs. of Cu indicated, 897,694 ounces of Au inferred plus 189,924 ounces of Au indicated, 15 million ounces of Ag inferred plus 1 million ounces of Ag indicated, and 80 million lbs. of Mo inferred plus 4 million lbs. of Mo indicated. The Ox porphyry, located 4 km northwest of Seel, contains a NI 43-101 compliant resource containing 16 million tonnes grading 0.3% Cu and 0.04% Mo in the inferred category.
The Company is well financed with over $6 million dollars in the treasury and holds a 2% NSR covering 23,000 hectares of mining claims located adjacent to the Blackwater Gold deposit in central British Columbia. Additional information is available on our website at www.goldreachresources.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Conrad Swanson
Chairman
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.
Contacts:
Gold Reach Resources
604-718-5454 or Toll Free: 888-500-4587
www.goldreachresources.com