Galway Metals Announces Royalty Buy Back at Its Clarence Stream Property
GALWAY METALS ANNOUNCES ROYALTY BUY BACK AT ITS CLARENCE STREAM
PROPERTY
Toronto, ON – 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 instalments 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 significant NSR, which covers the
entirety of all gold resources at Clarence Stream, plus the entirety of at least one additional zone discovered
by Galway after the resource was released. We see the removal of this royalty as a significant transaction
for Galway Metals shareholders as it will contribute meaningfully to further unlocking value of the Clarence
Stream land package beyond what we have already accomplished. The royalty holder prospected and staked
the claims on the Property, and his willingness to receive the majority of payment as shares in Galway
demonstrates his continued belief in the Property and in our Company’s future.”
About Galway Metals Inc.
Galway Metals is focused on two gold projects in Canada, Clarence Stream, an emerging gold district in
New Brunswick, and Estrades, the former producing, high- grade VMS mine in Quebec. The Company
began trading on January 4, 2013, after the successful spinout to existing shareholders from Galway
Resources Ltd. following the completion of the US$340 million sale of that company. With substantially
the same management team and Board of Directors, Galway Metals is keenly intent on creating similar
value as it had with Galway Resources Ltd.
For further information, please visit www.galwaymetalsinc.com or contact:
Robert Hinchcliffe
President, Chief Executive Officer & Director
Telephone: 1 (800) 771-0680
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Cautionary Statement
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this news
release.
This News Release includes certain "forward -looking statements" which are not comprised of historical
facts. Forward-looking statements include estimates and statements that describe the Company’s future
plans, objectives or goals, including words to the effect that the Company or management expects a stated
condition or result to occur. Forward- looking statements may be identified by such terms as “believes”,
“anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking
statements are based on assumptions and add ress future events and conditions, by their very nature they
involve inherent risks and uncertainties. Although these statements are based on information currently
available to the Company, the Company provides no assurance that actual results will meet management’s
expectations. Risks, uncertainties and other factors involved with forward-looking information could cause
actual events, results, performance, prospects and opportunities to differ materially from those expressed
or implied by such forward-looking information. Forward looking information in this news release includes,
but is not limited to, completion of the Royalty buy back, objectives, goals or future plans. Factors that
could cause actual results to differ materially from such forward -looking information include, but are not
limited to the risks involved in the mineral exploration and development industry, and those risks set out in
the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions
and factors used in preparing the forward- looking information in this news release are reasonable, undue
reliance should not be placed on such information, which only applies as of the date of this news release,
and no assurance can be given that such events will occur in the disclosed time frames or at all. The
Company disclaims any intention or obligation to update or revise any forward- looking information,
whether as a result of new information, future events or otherwise, other than as required by law.