Galway Resources Ltd. Enters Into Credit Agreement For $10 Million
August 29 2012 - 6:30AM
PR Newswire (Canada)
TORONTO, Aug. 29, 2012 /CNW/ - Galway Resources Ltd. ("Galway") is
pleased to announce that it has entered into a loan agreement with
Bank of Montreal providing for a senior non-revolving term facility
in an aggregate principal amount of up to C$10,000,000 to be used
to continue its current drilling program in Colombia, and for
general corporate purposes (the "Credit Facility"). The Credit
Facility has a maturity date of February 24, 2014 and bears
interest at a rate per annum equal to the prime rate (currently
3.0%) plus 0.5%, being an effective interest rate of 3.5% based on
today's prime rate. Galway may prepay amounts outstanding under the
18 month Credit Facility at any time without premium, penalty or
bonus. Funding pursuant to the Credit Facility is subject to the
satisfaction of certain conditions precedent, which Galway expects
to satisfy in the ordinary course. Upon satisfaction of such
conditions precedent, Galway intends to make a drawdown of
C$9,000,000 of the Credit Facility, and is entitled to make
additional monthly drawdowns up to the aggregate principal amount
of the Credit Facility for the purpose of paying interest and fees.
The Credit Facility does not require a charge on the assets of
Galway or its subsidiaries or a pledge of the shares of Galway or
its subsidiaries. About Galway Resources Ltd. Galway Resources is
primarily focused on the exploration of gold in northeast Colombia,
with drill programs occurring at the California and Vetas gold
projects. Galway also has the Victorio molybdenum-tungsten project,
with excellent infrastructure, in southwestern New Mexico. A
positive scoping study was completed by SRK in 2008. The recent
surge in tungsten pricing, coupled with a steady molybdenum price,
has prompted management to reassess strategic alternatives to
advance the Victorio project. 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. Forward Looking
Statements: Certain statements contained in this release containing
words like "believe", "intend", "may", "will", "expect", "would"
and other similar expressions, are forward-looking statements that
involve a number of risks and uncertainties. This forward-looking
information relates to, among other things, the satisfaction of
conditions precedent, the release of the principal amount of the
Credit Facility from escrow and the use of proceeds of the Credit
Facility. Statements in this release that are forward-looking
statements are subject to various risks and uncertainties
concerning the specific factors disclosed under the heading "Risk
Factors" and elsewhere in Galway's periodic filings with Canadian
Securities Regulators. Such information contained herein represents
management's best judgment as of the date hereof based on
information currently available. Galway does not assume the
obligation to update any forward-looking statement. Galway
Resources Ltd. CONTACT: Galway Resources Ltd.Robert
Hinchcliffe1-800-475-2412www.galwayresources.com
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