VANCOUVER, June 2, 2014 /CNW/ - Gold Reach Resources Ltd.
(the "Company") (GRV: TSX-V) is pleased to announce a
non-brokered private placement of up to 999,000 flow-through units
("FT Units") and up to 500,000 non flow-through units
("NFT Units") for gross proceeds of up to $1,044,280 ("Offering").
Each FT Unit will be offered at $0.72 and will consist of one flow-through common
share of the Company as defined in subsection 66(15) of the Income
Tax Act (Canada) and one-half of a
non flow-through common share purchase Warrant. Each NFT Unit
will be offered at $0.65 and will
consist of one common share of the Company and one whole non
flow-through Warrant. Each whole Warrant will be exercisable
into one common share of the Company at a price of $0.80 per share for a period of 24 months,
subject to acceleration of the expiry date after the four month
hold period in the event that the ten-day volume-weighted average
trading price of the shares is greater than $1.30 per share.
The Company will pay to certain finders, including Secutor
Capital Management Corp., a fee equal to 8% of the gross proceeds
received by the Company from the sale of certain of the FT Units
and NFT Units and will issue finder warrants ("Finder
Warrants") entitling certain finders to purchase that number of
shares of the Company equal to 8% of the total number of NFT Units
and FT Units sold pursuant to the Offering. Each Finder
Warrant will be exercisable at a price of $0.72 per share for a period of 24 months.
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). The net
proceeds raised from the issuance of the NFT Units will be used by
the Company for exploration and general corporate purposes.
The Company also reports that it is not proceeding with the
private placement announced on March 25,
2014.
The transaction is subject to TSX Venture Exchange approval.
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.