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Elko, Nevada: March 22, 2007 – Galway Resources Ltd. (GWY: TSX-V) announces that it intends to complete a non-brokered private placement of up to 6,117,000 units at a price of $0.85 per unit for gross proceeds of up to $5,199,450, subject to regulatory approval. Substantially all of the financing ($5,000,000) will be subscribed for by a company controlled by Sprott Asset Management Inc. Each unit will be comprised of one common share and one-half of one common share purchase warrant. Each whole warrant is 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, such period beginning on or after the date that is four months and one day after the date of issuance of the warrants.
Galway intends to pay a 7% cash finder’s fee to Fort House Inc. in connection with the private placement.
Galway intends to use the balance of proceeds of the private placement for the ongoing development of its three U.S. based projects and for general corporate purposes and working capital.
About the Company
Galway is focused on developing three U.S. based mining projects (Victorio, Indian Springs and Lone Mountain) that are favorably located with respect to infrastructure and have over 300,000 feet of historical drilling. We have established a solid technical team that has compiled all the historical data and is now advancing these projects in an aggressive but cost effective manner. Management believes that its strategic portfolio of properties offers investors a significant exposure to a unique blend of commodities including molybdenum, tungsten, zinc and copper.
For further information contact:
ON BEHALF OF THE BOARD OF DIRECTORS
President and Director
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 completion of financings and, 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 contemplated financings and the use of proceeds.