Not for distribution to United States Newswire Services or for Dissemination in the United States
Vancouver, British Columbia: June 7, 2006 – Galway Resources Ltd. (GWY: TSX-V) (“Galway” or the “Company”) is pleased to announce that it has negotiated a non-brokered private placement of up to 2 million Units (“Units”) at a price of $1.00 per Unit, for total maximum proceeds of $2 million, subject to regulatory approval. Each Unit will consist of one common share in the capital of the Company and one-half of a non-transferable share purchase warrant (a “Warrant”). Each full Warrant will entitle the holder thereof to purchase one additional common share in the capital of the Company for a period of eighteen months from the date of issuance of the Warrant, at a price of $1.40 per share. The Warrants will be subject to accelerated expiry in the event the closing trading or quotation price of the common shares of the Company on the TSX Venture Exchange is $1.80 per common share or higher over a period of 20 consecutive trading or quotation days beginning on the date that is four months and one day after the date of issuance of the Warrants.
The securities will be subject to applicable Canadian hold periods. The Company may pay a finder’s fee in connection with certain of the placees.
The proceeds of the private placement will be used to fund work commitments on the Company’s Indian Springs and Victorio Mountain Project, with the remainder being utilized for general working capital purposes.
About Galway Resources
Galway is a mining exploration company with a focus on acquiring, exploring and developing mineral properties in North and South America.
For further information contact:
Galway Resources Ltd.
President and Director
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.
Forward Looking Statements:
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to the completion of transactions, the timing and amount of payments and share issuances, the completion of financings, the use of proceeds, future exploration, development and production activities and future expenditures. 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 contemplated transactions, payments, share issuances and financings, the use of proceeds, the time and success of future exploration, development and production activities and the timing and amount of expenditures.