Gold Reach arranges one-million-share private placement
November 15, 2010
Mr. Conrad Swanson reports
GOLD REACH RESOURCES LTD. ANNOUNCES PRIVATE PLACEMENT
Gold Reach Resources Ltd. has arranged a non-brokered private placement for one million units of the company at a purchase price of $2.30 per unit, with each unit consisting of three flow-through units of the company at a deemed price of 60 cents per FT unit and one non-flow-through unit of the company at a deemed price of 50 cents per NFT unit.
Each FT unit comprises one flow-through common share of the company and one full non-flow-through share purchase warrant of the company. Each warrant will entitle the holder thereof to purchase one non-flow-through common share of the company at an exercise price of 85 cents 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 Columbian properties.
Each NFT unit comprises one common share and one full warrant, with each warrant entitling the holder thereof to purchase one common share at an exercise price of 85 cents 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 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-V, 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-V.
We seek Safe Harbor.