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Galway Metals Announces Option Payment for Royalty Buy Back at Its Clarence Stream Property
TORONTO, ON / ACCESSWIRE / August 1, 2024 / Galway Metals Inc. (TSXV:GWM) (" Galway " or the " C...
About this update from Galway Metals, Inc.
[{"type":"text","content":"Galway Metals Announces Option Payment for Royalty Buy Back at Its Clarence Stream PropertyTORONTO, ON / ACCESSWIRE / August 1, 2024 / Galway Metals Inc. (TSXV:GWM) (\"Galway\" or the \"Company\") is pleased to announce that it intends to settle the fifth (5th) of six (6) payments (the \"Fifth Partial Payment\") due in consideration of an agreement previously announced on July 21, 2020 (the \"Agreement\") by the cash payment of $125,000 and the issuance of 806,452 common shares in the Capital of the Company (\"Shares\") at a deemed price equal to $0.465 per Share for a total deemed price of $375,000.Pursuant to the Agreement, the Company bought back a two percent (2.0%) net smelter returns royalty (the \"Royalty\") from an arm's length third party royalty holder (the \"Former Royalty Holder\"), covering certain mineral claims at the Company's Clarence Stream property in southwest New Brunswick (the \"Property\"). The Agreement provided for a total purchase price of$3,000,000 in six equal annual instalments of $500,000, with each partial payment representing the purchase of one-sixth (1/6) of the Royalty (each a \"Partial Payment\"). The first Partial Payment was settled on Closing in 2020 through the issuance of 434,783 Shares to the Former Royalty Holder at a deemed price equal to $1.15 per Share for a total deemed price of$500,000. Pursuant to the Agreement, each subsequent $500,000 Partial Payment is to be paid as follows: (i) $125,000 in cash; and, (ii) the remaining $375,000, at the sole election of the Company, shall be paid either in cash, through the issuance of Shares, or a combination thereof as shall equal $375,000. The Shares will be subject to the statutory hold periods of four months and one day from the date of issuance. Completion of the issuance of the Shares is subject to the receipt of all regulatory approval including the approval of the TSXV.About Galway Metals Inc.Galway Metals is focused on creating significant per share value through the exploration and sustainable development of its two 100%-owned projects in Canada. Galway's flagship project, Clarence Stream, is one of the most important gold districts in Atlantic Canada as it hosts a large, high-grade gold resource in SW New Brunswick. Also important is Estrades, the former- producing, high-grade, gold- and zinc-rich polymetallic VMS mine in the northe...