Galway Resources Ltd. closes $10 million credit agreement
August 30 2012 - 7:21AM
PR Newswire (Canada)
TORONTO, Aug. 30, 2012 /CNW/ - Galway Resources Ltd. ("Galway") is
pleased to announce that it has satisfied the conditions precedent
to funding of a previously announced senior non-revolving term
facility in an aggregate principal amount of up to C$10,000,000.
Accordingly, funding under the Credit Facility is available to
Galway, which intends to use such funds to continue its current
drilling program in Colombia, and for general corporate purposes.
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. 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 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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