Gold Reach Resources Ltd. Announces Completion of Non-Brokered Private Placement, A New Private Placement and the Grant of Stock Options
February 7, 2011
Vancouver, B.C. – Gold Reach Resources Ltd. (GRV: TSX-V), (the “Company”) announces it has closed the non-brokered private placement unit offering of 240,000 Units, raising gross proceeds of $100,800 announced January 24, 2011. The shares issued are subject to a four-month hold period expiring June 8, 2011.
The Company further announces it has arranged an additional 800,000 Unit non-brokered private placement offering to raise gross proceeds of $336,000. Each Unit is comprised of one common share of the Company at a subscription price of $0.42 per common share and one full Warrant entitling the holder to purchase one additional common share of the Company at an exercise price of $0.60 for a two year period from the closing date of the Unit offering. Proceeds will be used for general working capital.
Each Warrant is subject to accelerated expiry provisions such that if at any time after the date of Closing of the private placement, 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. There is no Finder’s Fee in this transaction, the shares will be subject to a four-month hold period expiring from the Closing Date and is subject to acceptance by the TSX Venture Exchange.
As well, the Company announces that further to its stock option plan it has granted an aggregate of 48,800 stock options to various directors, officers, employees and consultants of the Company. The options are exercisable at $0.50 per share for a term of two years from the date of grant.
About Gold Reach:
Gold Reach Resources Ltd. is a Canadian exploration company actively involved in the exploration of its 14,200 hectare 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.