Gold Reach Completes $1,000,000 Non-Brokered Private Placement With The Mineral Fields Group
Gold Reach Resources Ltd. has completed a non-brokered private placement with the MineralFields Group to raise aggregate gross proceeds to the company of $1-million through the issuance of 2 million flow-through units at a purchase price of 50 cents 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 has a term of 12 months from the date of closing of the private placement and entitles the holder thereof to purchase one non-flow-through common share of the company at an exercise price of 75 cents per share at any time on or before 12 months after closing date.
As a payment of a finder’s fee in connection with the private placement, the company issued 150,000 non-transferable options 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 of the company at an exercise price of 50 cents 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 finder’s warrant entitles the holder thereof to purchase one non-flow-through common share of the company at an exercise price of 75 cents 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 Oct 2, 2010, under applicable securities law 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 chief executive officer. “This is an important milestone in the growth of Gold Reach Resources Ltd. and we look forward to working with MineralFields as we develop our exploration properties.”