Gold Reach Resources Ltd. Announces Private Placement
November 15, 2010
Vancouver, B.C. – Gold Reach Resources Ltd. (GRV: TSX-V), (the “Company”) announces it has arranged a non-brokered private placement offering (the “Offering”) for one million units of the Company (“Units”) at a purchase price of $2.30 per Unit with each Unit consisting of ,three flow-through Units of the Company (“FT Units”) at a deemed price of $0.60 per FT Unit and one Non-flow-through unit of the Company (“NFT Units”) at a deemed price of $0.50 per NFT Unit. Each FT Unit is comprised of one flowthrough common share of the Company and one full non-flow-through share purchase warrant of the Company (a “Warrant’). Each Warrant will entitle the holder thereof to purchase one non-flow through common share of the Company (“Common Share”) at an exercise price of $0.85 per Warrant for a period of two years from the closing date of the Offering, subject to acceleration as set out below. The proceeds from the sale of the FT Units comprising the Offering will be used to complete exploration work on the Company’s British Columbia properties.
Each NFT Unit is comprised of one Common Share and one full Warrant with each Warrant entitling the holder thereof to purchase one Common Share at an exercise price of $0.85 for a period of two years from the closing date of the Offering, subject to acceleration as set out below. The proceeds from the sale of NFT Units comprising the Offering will be used for general working capital purposes.
Each Warrant will be subject to accelerated expiry provisions which provide that if at any time after the date of Closing of the Offering, the Company’s common shares trade on the TSX Venture Exchange at or above a weighted average trading price of $1.00 per share for 10 consecutive trading days, the Company may give notice to the holders that each Warrant will expire 30 days from the date of providing such notice if the Warrant has not been duly exercised by the holder.
The Company may pay a finder’s fee on the sale of Units under the Offering .
The securities issued under the Offering will be subject to resale restrictions under applicable securities laws and the rules and policies of the TSX Venture Exchange including, a four-month plus one day hold period from the date of closing of the Offering.
The Offering and finders’ fees are subject to acceptance of the TSX Venture Exchange.
About Gold Reach:
Gold Reach Resources Ltd. is a Canadian exploration company actively involved in the exploration of its newly acquired Auro Claims adjacent to Richfield Ventures’ gold discovery in central BC and the development of the Seel and Ox Lake projects, a 19,105 hectare copper-gold-molybdenum-silver project located 120 kilometres south of Houston, BC and eight kilometres east of the producing coppermolybdenum Huckleberry Mine.
ON BEHALF OF THE BOARD OF DIRECTORS
Conrad Swanson, President
For further information, please contact:
Gold Reach Resources Telephone: 604-718-5454 Toll Free: 888-500-4587 Web: http://www.goldreachresources.com
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.