Gold Reach Increases And Closes Non-Brokered Private Placement
December 28, 2007
Vancouver, British Columbia: Gold Reach Resources Ltd. (GRH: TSX-V) ("Gold Reach" or the "Company") is pleased to announce that it has closed the non-brokered private placement (the “Private Placement”) previously announced on December 7, 2007 for an increased aggregate of 6,658,364 units (the “Units”) at a purchase price of $0.15 per Unit for total gross proceeds to the Company of $998,755.
Each Unit consists of one common share of the Company, issued on a flow-through basis under the Income Tax Act (Canada), and one half of one non transferable common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to purchase one non-flow-through common share of the Company at a purchase price of $0.25 per share for a period of one year from closing of the Private Placement.
Finders’ fees were paid to certain finders, as set out below, in cash and non-transferable common share purchase warrants (the “Finder’s Warrants”). Each whole Finder’s Warrant entitles the holder to purchase one non-flow-through common share of the Company at a purchase price of $0.25 per share for a period of one year from closing of the Private Placement. A finder’s fee was paid to Canaccord Capital Corporation in the amount of $53,456.24 and 472,499 Finder’s Warrants and to Limited Market Dealer Inc. in the amount of $12,500 and 166,666 Finder’s Warrants. A due diligence fee of $6,250 plus GST was also paid to Limited Market Dealer Inc.
All of the common shares and warrants issued to the purchasers and the finders are subject to a four month hold period which expires on April 28, 2008.
About Gold Reach:
Gold Reach Resources is a Canadian exploration company actively involved in the development of the Seel and Ox Lake property, a 17,149.5 hectare copper-gold-molybdenum property located 120 Km south of Houston, BC and eight kilometres to the east of the producing Huckleberry Mine.
ON BEHALF OF THE BOARD OF DIRECTORS
Conrad Swanson, President
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