Vancouver, August 16, 2006 – Galway Resources Ltd. (TSXV:GWY ) (“Galway” or the “Company”) is pleased to announce that Mr. Leigh Freeman has joined the Board of Directors and that it has successfully closed its non-brokered private placement of $1.64 million. Mr. Freeman has over 30 years working in the mining industry starting his career with Placer Dome, afterwards he then spent a number of years developing natural resource projects sourcing capital from the public equity markets. Mr. Freeman is currently a principal with an executive search firm that provides strategic consulting and employment services for the mining sector.
“Leigh Freeman not only brings strong technical skills that will be useful moving our projects forward in a timely manner, but Leigh also has very strong contacts on both the corporate and financial side of the mining industry. Additionally, as Galway progresses, Leigh will be instrumental in providing strategic insights to maximize the value for our shareholders and to leverage off his contact and knowledge base. In short, we are extremely pleased to having him join the board,” stated Robert Hinchcliffe President of Galway Resources.
Working in diverse roles, Leigh Freeman has over 30 years working in the mining industry in different capacities. For the past six years Leigh Freeman has been working as a principal with Downing Teal Inc, one of the top executive search firms that focuses on employment needs for the mining industry. In addition to fulfilling the staffing needs of senior and junior mining companies, Mr. Freeman and his staff work closely with companies in implementing their business strategies.
Prior to joining Downing Teal, for 10 years Mr. Freeman was involved with the funding and development of natural resource projects in both North and South America. Most notably, Mr. Freeman was a co-founder and President of Orvana Minerals (a TSX listed company). During his tenure he was instrumental in raising over CDN $75 million for the development of a gold mine in Bolivia, in addition to other projects. Earlier on his career he spent 10 years working for Placer Dome on both the exploration and production front as a geologist and engineer.
Mr. Freeman earned a BS in Geological Engineering from the Montana College of Mineral Science and attended graduate school at Golden Gate University Business School. Mr. Freemen is on the Advisory Boards at Montana Tech and the University of Arizona. He is a Trustee for the Society of Economic Geology and is an invited speaker at industry conferences throughout North America.
Closing Of Private Placement
The Company has successfully completed its previously announced private placement raising a total of $1.64 million with the issuance of 2,045,550 units at $0.80 per unit, with each unit consisting of one share and one-half of a warrant, with each whole warrant exercisable at $1.25 for 18 months from today. A brokers’ fee of $58,050 was paid in cash and 107,625 in brokers warrants were paid to two companies as a finders’ fee in conjunction with the financing. The brokers warrants entitle the finder to purchase an additional common share in the capital of the Company for a period of 18 months from today at a price of $0.80 per share. The shares, the warrants and the shares issued on exercise of the warrants have a four month hold period which ends on December 16, 2006.
The Company has allocated 200,000 stock options at a price of $0.81 to certain directors and officers for a period of 5 years. The options will vest according to the Company’s stock option plan.
About Galway Resources
Galway is a mining exploration company focused on developing two recently acquired advanced exploration projects that are located in the United States. Collectively the Indian Springs and Victorio projects have 250,000 feet of historical drilling done on the projects. Both projects are located in the United States in states that have a history of mining, and both projects are well situated with regards to existing infrastructure. The Company has successfully compiled all the historical data on both projects and has recently commenced a drilling program at the Indian Springs tungsten project and expects to begin drilling at the Victorio molybdenum-tungsten project in the early Fall. The Company continues to look for interesting projects with reasonable deal terms in an effort to further diversify its commodity exposure.
For further information contact Rob Hinchcliffe at (212) 861-6984.
On behalf of the Board of Directors
GALWAY RESOURCES LTD.
Rob Hinchcliffe, President
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the contents herein.
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.