VANCOUVER, June 11, 2014 /CNW/ - Gold Reach Resources Ltd.
(the "Company") (GRV: TSX-V) is pleased to announce that it
anticipates a pending refund of approximately $1,700,000 arising from the Company's claim for
refundable B.C. Mineral Exploration Tax Credits ("BCMETC").
During the fiscal year ended March 31,
2014, the Company incurred qualified exploration
expenditures in British Columbia
on the Ootsa Property located within the prescribed Mountain Pine
Beetle affected area that qualify for an enhanced tax credit refund
of 30% of qualifying expenditures. Based on the Company's recently
filed T2 Corporate income tax return for the year ended
March 31, 2014, a refund in excess of
$1,700,000 is anticipated. Receipt of
the refund is expected sometime between July
2014 and October 2014 and it
is subject to a Canada Revenue Agency review and possible
audit.
To access a portion of this anticipated refund for the use on
the 2014 Ootsa exploration program, the Company has entered into a
$1,000,000 bridge loan agreement
whereby the lender will advance the Company the loan amount
("Loan"), bearing interest at 12% per annum to be accrued and
compounded quarterly. The Loan and accrued interest will be secured
by a first and floating charge on the BCMETC refund total.
Repayment of the Loan's principal amount and payment of the accrued
interest thereon are both due on the earlier of twelve months from
the date of the original Loan advance or within three days of the
Company's receipt of the BCMETC refund ("Maturity Date"). On the
date of the Loan advance the Company will issue 500,000 common
share warrants ("Warrants") entitling the lender to purchase one
common share at any time on or before the Maturity Date at an
exercise price per share equal to $0.80.
Shares acquired by the lender from the exercise of Warrants are
subject to a four-month hold period commencing from the date of
issue of the Warrants.
The bridge loan agreement is subject to the acceptance of the
TSX Venture Exchange.
ON BEHALF OF THE BOARD OF DIRECTORS
"Shane Ebert"
Shane Ebert,
President/Director
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX VentureExchange) accepts responsibility for the
adequacy or accuracy of this release.
This news release contains forward-looking information, which
involves known and unknown risks, uncertainties and other factors
that may cause actual events to differ materially from current
expectation. Important factors - including the expected receipt of
METC credits, the results of financing efforts, the results of
exploration activities -- that could cause actual results to differ
materially from the Company's expectations are disclosed in the
Company's documents filed from time to time on SEDAR (see
www.sedar.com). Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date of this press release.
The company disclaims any intention or obligation, except to the
extent required by law, to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
SOURCE Gold Reach Resources Ltd.