Gold Reach Resources Ltd. Announc es Completion of a $1,000,000 Non- Brokered Private Placement with the MineralFields Group
NEWS RELEASE
JUNE 1, 2010 SYMBOL – TSX-V:GRV
Gold Reach Resources Ltd. Announces Completion of a $1,000,000 Non- Brokered Private Placement with the MineralFields Group
Gold Reach Resources Ltd. (the “Company”) is pleased to announce that it has completed a non-brokered private placement (the “Private Placement”) with the MineralFields Group to raise aggregate gross proceeds to the Company of $1,000,000 through the issuance of 2,000,000 flow-through units (each a “Flow-Through Unit”) at a purchase price of $0.50 per Flow-Through Unit. Each Flow-Through Unit consists of one common share in the capital of the Company, issued on a flow-through basis under the provisions of the Income Tax Act (Canada), and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each whole Warrant has a term of 12 months from the date of closing of the Private Placement (the “Closing Date”) and entitles the holder thereof to purchase one non-flowthrough common share of the Company at an exercise price of $0.75 per share at any time on or before 12 months after the Closing Date.
As payment of a finder’s fee in connection with the Private Placement, the Company issued 150,000 nontransferable options (each a “Finder’s Option”) to Limited Market Dealer Inc. (“LMD”) and paid a cash finder’s fee of $50,000 to LMD. Each Finder’s Option is exercisable to acquire a unit (a “Finder’s Unit”) of the Company at an exercise price of $0.50 per Finder’s Unit for a period of 12 months from the Closing Date. Each Finder’s Unit consists of one non-flow-through common share in the capital of the Company and one-half of one non-transferable common share purchase warrant (each whole warrant, a “Finder’s Warrant”). Each whole Finder’s Warrant entitles the holder thereof to purchase one non-flowthrough common share of the Company at an exercise price of $0.75 per share at any time on or before 12 months after the Closing Date.
All of the securities issued in connection with the Private Placement and to the finder are subject to a four month hold period expiring October 2, 2010 under applicable securities laws and the rules of the TSX Venture Exchange.
"We are very pleased to be entering into this relationship with MineralFields Group", said Conrad Swanson, President and CEO. "This is an important milestone in the growth of Gold Reach Resources Ltd. and we look forward to working with MineralFields Group as we develop our exploration properties”.
ON BEHALF OF THE BOARD
GOLD REACH RESOURCES LTD.
“Conrad Swanson” (signed)
Conrad Swanson, President and Chief Executive Officer Phone: 604-718-5454
About MineralFields, Pathway and First Canadian Securities ®
MineralFields Group (a division of Pathway Asset Management) based in Toronto, Vancouver, Montreal and Calgary is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate class mutual fund series). First Canadian Securities® (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities®.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.