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SOURCE Gold Reach Resources Ltd.
VANCOUVER, June 11, 2014 /PRNewswire/ - 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, 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.
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