Mr. Robert Hinchcliffe reports
GALWAY METALS ANNOUNCES SECOND ROYALTY BUY BACK AT ITS CLARENCE STREAM PROPERTY
Galway Metals Inc. has entered into an agreement dated July 27, 2020, with an arm's-length third party royalty holder to buy back a 1-per-cent net smelter return royalty covering certain mineral claims at the company's Clarence Stream property in southwestern New Brunswick. This is a separate royalty and is in addition to the royalty purchase announced on July 21, 2020. The mineral claims subject to the Royalty cover the Jubilee Zone, parts of the Richard Zone, the recently reported new discovery of 186.5 g/t Au over 0.6m located 950m SW of the Jubilee Zone and other prospective properties.
The original agreement allowed only for buyback of one-half percent (0.5%) of the royalty for $500,000. Galway was able to negotiate with the royalty holder to purchase the royalty in its entirety. Under terms of the Agreement, Galway Metals will pay a total purchase price of $580,000 comprised of a cash payment of $100,000 and 400,000 common shares in the capital of the Company at a deemed price of $480,000 ($1.20 per Share).
The transaction is subject to receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
Robert Hinchcliffe, president, chief executive officer and director, commented: "We are pleased to complete a second royalty acquisition at the Clarence Stream Project, and, just as with our first royalty buyback, will contribute meaningfully to further unlocking value of the Clarence Stream land package beyond what we have already accomplished. The royalty holder's willingness to receive the majority of payment as shares in Galway demonstrates belief in the property and in the Company's future."
Review by qualified person, quality control and reports
Michael Sutton, PGeo, director and vice-president of exploration for Galway Metals, is the Qualified Person who supervised the preparation of the scientific and technical disclosure in this news release on behalf of Galway Metals Inc. All core, chip/boulder samples, and soil samples are assayed by Activation Laboratories, 41 Bittern Street, Ancaster, Ontario, Canada, who have ISO/IEC 17025 accreditation. All core is under watch from the drill site to the core processing facility. All samples are assayed for gold by Fire Assay, with gravimetric finish, and other elements assayed using ICP. The Company's QA/QC program includes the regular insertion of blanks and standards into the sample shipments, as well as instructions for duplication. Standards, blanks and duplicates are inserted at one per 20 samples. Approximately five percent (5%) of the pulps and rejects are sent for check assaying at a second lab with the results averaged and intersections updated when received. Core recovery in the mineralized zones has averaged 99%.
About Galway Metals Inc.
Galway Metals is focused on two gold projects in Canada, Clarence Stream, an emerging gold district in New Brunswick, and Estrades, the former producing, high-grade VMS mine in Quebec. The Company began trading on January 4, 2013, after the successful spinout to existing shareholders from Galway Resources Ltd. following the completion of the US$340 million sale of that company. With substantially the same management team and Board of Directors, Galway Metals is keenly intent on creating similar value as it had with Galway Resources Ltd.
We seek Safe Harbor.
© 2020 Canjex Publishing Ltd. All rights reserved.