Confirmed news
Galway Resources Ltd. closes $10 million credit agreement (cnw)
TORONTO, Aug. 30, 2012 /CNW/ - Galway Resources Ltd.(GWY: TSX-V) ("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 inColombia, and for general corporate purposes.
The Credit Facility has a maturity date of February 24, 2014and 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.