Sprott Asset Management invests in Galway Resources
Thu Apr 26, 8:09 AM
ca.news.finance.yahoo.com
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ELKO, NV, April 26 /CNW/ - Galway Resources Ltd. ("Galway" or the "Company") (TSX-V: GWY) announces that it has completed its previously announced non-brokered private placement in the amount of 6,000,000 units at a price of $0.85 per unit for gross proceeds of $5,100,000. As previously announced, Sprott Asset Management accounted for substantially all of the financing. More specifically, Sprott Asset Management subscribed for a total of 5,882,353 units, of which 2,941,177 units have been subscribed by the Sprott Molybdenum Participation Corporation.
"The launching by Sprott Asset Management of the first ever Molybdenum investment fund highlights in our mind the strategic importance of Molybdenum and the favourable supply and demand fundamentals," said Robert Hinchcliffe, the President of Galway, adding "We are very pleased that Galway with its flagship Victorio Molybdenum-Tungsten project is one of the fund's early investments."
Each unit is comprised of one common share and one-half of one non-transferable common share purchase warrant, each whole such warrant exercisable for one additional common share at a price of $1.30 per share for a period of 24 months from the date of closing. The warrants will be subject to acceleration in the event the closing trading price of the common shares of Galway on the TSX Venture Exchange is $1.75 per share or higher over a period of 20 consecutive trading days beginning on the date that is four months and one day after the date of issuance of the warrants.
A 7% cash finder's fee was paid to Fort House Inc. in connection with the financing.
The securities are subject to a hold period and may not be traded until August 26, 2007 except as permitted by Canadian securities legislation and the TSX Venture Exchange.
Galway intends to use the proceeds of the private placement to fund the Company's 12 month work program on each of its three properties (Indian Springs, Victorio and Lone Mountain), as recommended in the technical reports prepared by SRK Consulting (U.S.), with the balance available for general working capital purposes.
About Galway Resources
Management is focused on developing three U.S. based exploration projects that are favourably located and have over 300,000 feet of historical drilling. We have established a solid technical team that has compiled all the historical data and are now advancing these projects in an aggressive but cost effective manner. Management believes that its strategic portfolio of properties offers investors an interesting exposure to a unique blend of commodities (molybdenum, tungsten, copper and zinc).
On behalf of the Board of Directors
GALWAY RESOURCES LTD.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to the use of proceeds. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the ability to complete the contemplated use of proceeds.
Contacts
Rob Hinchcliffe
President and Director
1-800-475-2412
www.galwayresources.com |
