Galore Appoints New President and CFO, a Further Agreement with Amarc to Accelerate the Sale of Taseko, a Loan Arrangement and Shares FOR Debt Settlement
Suite 1100 - 1111 Melville Street | Vancouver, BC, Canada | V6E 3V6
Tel: (604) 647-2298 | Toll Free: 1 (877) 647-2298 | Fax: (604) 648-8894 | www.galoreresources.com
FOR IMMEDIATE RELEASE February 7, 2017
GALORE APPOINTS NEW PRESIDENT AND CFO, A FURTHER AGREEMENT WITH
AMARC TO ACCELERATE THE SALE OF TASEKO, A LOAN ARRANGEMENT AND
SHARES FOR DEBT SETTLEMENT
Vancouver, BC: Galore Resources Inc. (TSX -V: GRI) (the “Co mpany”) reports that Mr. Uwe
Schmidt, Galore’s President and CFO has advised the board of his wish to retire and has provided his
resignation as President, Chief Financial Officer and a director, effective immediately. Mr. Mike
McMillan, the Company’s Chi ef Executive Officer and a director will take the place of President of
Galore and Mr. Andrew McMillan will be appointed Chief Financial Officer. The Company thank s
Mr. Schmidt for all his time, effort and involvement with Galore since 2006 and wishes him the best in
his retirement and future endeavors.
Sale of Taseko
Further to the Company’s news release of July 22, 2016, wherein the Company announced it had
entered into a revised Option Agreement with Amarc for the sale of Taseko, it was announced by
Amarc on January 11, 2017 that Thompson Creek Metals Company Inc. had relinquished its option to
earn up to a 50% interest in Amarc’s IKE property and surrounding district, located near Gold Bridge,
British Columbia. The Taseko properties comprise of extensive mineral claims surrounding the IKE
property and therefore this prompted Amarc to negotiate an amended agreement with Galore to
acquire the full 100% interest in Galore’s Taseko properties , clear of any royalties to Galore , by
making a final payment of $280,000 which has now been received by Galore.
Loan
The Company’s Board of Directors has authorized management to proceed with a loan arrangement
with a senior officer / director of the Company (the “Lender”), whereby the Company will borrow
USD$150,000.00 (the “Loan”).
Under the terms of the loan agreement, the Loan shall bear an interest at the rate of 8% per annum
compounded monthly, payable on demand, provided however that the Lender agrees not to make
demand within the first six (6) months of the Loan, which will be due on January 12, 2019.
Subject to the approval of the TSX Venture Exchange, a s further consideration for advancing the
Loan, the Company has agreed to issue to the Lender a bonus of 1,000,000 common shares in its share
capital (the "Bonus Shares"). The Bonus Shares will be subject to a four -month hold period
commencing from the date of issuance.
The Loan constitutes a related party transaction within the meaning of Multilateral Instrument 61 -101,
however shall be exempt from the formal valuation and minority approval requirements of Multilateral
Instrument 61-101 as it represents less than 25% of the Company's market capitalization.
Management considers the Loan to be advantageous as it provides additional liquidity and financial
flexibility to the Company and management also considers the terms of the Loan to be reasonable in
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the context of the market. The Loan was reviewed and approved by the disinterested members of the
Company's board of directors. The proceeds will be used t o maintain and preserve the Company’s
existing operations, activities and assets, advancement of its Mexico properties and for working capital
purposes.
Shares for Debt Settlement
The Company’s Board of Directors has also authorized management to proceed with an arrangement
for the settlement of CDN$51,000 .00 of debt with a former related party, by the issuance of 510,000
common shares at a price of $0.10 per share. The shares will be subject to a 4 month hold period from
the date of issuance. This transaction is subject to regulatory approval.
The shares associated with the debt settlement are being issued to preserve cash committed to project
development and working capital.
Galore Resources is a British Columbia -based exploration company that has as sembled a leading
group of industry professionals to acquire and explore for promising deposits in Mexico and British
Columbia.
“Michael McMillan”
President and CEO
To find out more about Galore Resources (TSX.V:GRI) please contact:
Mike McMillan at (210) 860-9212 (USA) / (604) 647-2298 (CAN) / Toll Free: 1 (877) 647-2298
Please visit our website at www.galoreresources.com or contact us at [email protected].
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.