Galway Metals Announces Royalty Buy Back at its Clarence Stream Property

About this update from Galway Metals, Inc.

[{"type":"text","content":"Galway Metals Announces Royalty Buy Back at its Clarence Stream PropertyTORONTO, ON / ACCESSWIRE / July 21, 2020 / Galway Metals Inc. (TSXV:GWM) (\"Galway Metals\" or the \"Company\") is pleased to announce that it has entered into an agreement (the \"Agreement\") with an arm's length third party royalty holder to buy back a two percent (2.0%) net smelter returns royalty (the \"Royalty\") covering certain mineral claims at the Company's Clarence Stream property in southwest New Brunswick (the \"Property\"). The mineral claims fully cover the South, North and George Murphy Zones, the gap area between the George Murphy and Richard Zones, and potential extensions to these zones and other prospective targets. The purchase of the Royalty was closed effective today pursuant to an agreement dated July 15, 2020.The original agreement allowed only for buyback of one percent (1.0%) of the royalty for $500,000 for each 0.5%. Galway was able to negotiate with the royalty holder to purchase the royalty in its entirety. Under terms of the Agreement, Galway Metals will pay a total purchase price of $3,000,000 in six equal annual installments of $500,000, with each partial payment representing the purchase of one-sixth (1/6) of the Royalty (each a \"Partial Payment\"). Pursuant to the Agreement, on closing Galway will issue 434,783 common shares in the capital of the Company (\"Shares\") to the royalty holder, which shall represent the first Partial Payment of $500,000 at a deemed price equal to $1.15 per Share. Each subsequent $500,000 Partial Payment shall 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 with the Shares valued at a deemed price equal to the higher of: (A) the closing price of the Shares on the TSX Venture Exchange (\"TSXV\") on the day that is two (2) business days prior to the date of the respective share issuance, and (B) the lowest price of Shares that shall be acceptable to the TSXV. The Shares will be subject to the statutory hold periods of four months and one day.Robert Hinchcliffe, President, Chief Executive Officer & Director, commented, \"We are extremely pleased to have come to an agreement with the royalty holder to buy back this significa...

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