TORONTO, ONTARIO--(Marketwired - Dec. 21, 2017) - Galway Metals Inc. (TSX VENTURE:GWM) (the "Company") is pleased to announce that it has completed a non-brokered private placement financing (the "Offering"). The Offering consisted of the sale of 860,000 Hard Dollar Units ("HD Units") at a price of $0.35 per HD Unit and 465,116 Flow Through Units ("FT Units") at a price of $0.43 per FT Unit for total gross proceeds of $501,000. This is in addition to the closing of two earlier financings totaling $4.6 which were announced on November 14, 2017 and November 27, 2017.
Each HD Unit consists of one (1) common share in the capital stock of Galway Metals (each a "Share") and one-half (1/2) of one Share purchase warrant (a "Warrant"). Each FT Unit consists of one (1) Flow Through Share and one-half (1/2) of one Warrant. Each Warrant will entitle the holder to purchase one Share at the price of $0.50 for a period of 24 months after closing. If the closing price on the TSX Venture Exchange equals or exceeds $0.75 per Share for a period of 20 consecutive trading days, the Company has the right to accelerate the expiry date of the Warrants to the 30th day following the company mailing a notice of acceleration.
The $301,000 in HD Units were subscribed by Fonds de solidarité FTQ, which is a development capital investment fund that channels the savings of Quebecers into investments. As at May 31, 2017, the organization had $13.1 billion in net assets, and through its current portfolio of investments has helped create and protect 186,440 jobs. The Fonds is a partner in more than 2,700 companies and has 645,664 shareholder-savers. For more information: www.fondsftq.com.
In connection with the Offering, Michael Sutton an officer and a Director of the Company, has acquired 465,116 FT Units. This issuance of FT Units to Mr. Sutton is considered a "related party transaction" as such term is defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under MI 61-101 on the basis that participation in the Offering by Insiders does not exceed 25% of the fair market value of the Company's market capitalization.
The securities issued and issuable pursuant to the Offering will be subject to a four month and one-day statutory hold period. Galway Metals intends to use net proceeds from the Offering to complete field work on its Estrades and Clarence Stream properties in western Québec, Canada and New Brunswick, Canada, respectively.
The Company also announces the resignation of Robb Doub from the Board of Directors but we are pleased to announce that Mr. Doub will remain involved with the company in his capacity as an advisor.
Robert Hinchcliffe, President and CEO stated, "The Board of Directors and management would like to thank Mr. Doub for his contribution to the Company. His experience and advice has been very important to the advancement of Galway Metals and we are very grateful. We look forward to continuing to rely on Robb for his invaluable insights as an advisor. The Company is presently reviewing a short-list of potential Board candidates and we expect to add a new member in the coming weeks."
