Galway Resources Ltd V.GWY

Mining Pledge - Mineral Interests

[Silverwhere]

Think I goofed up on that last post. This is probably what we're looking for:

Page 104

(h) Mineral Interests, including Hydrocarbons.

"the rights derived from mining grants (i.e. the right to explore and produce with regards to State owned mines) may be pledged, solely to secure payment of obligations acquired in order to enable the building, setting-up and production of the relevant mining grant or concession (the so-called mining pledge)"

See page 104, second paragraph at his link (again):

https://www.lexmundi.com/images/lexmundi/PracticeGroups/BankFinance/SOCsurvey/Security_Over_Collateral_Compilation.pdf

So does this mean that the BMO loan was "secured" once the concessions were signed over to GWY?

(Was late reading this stuff earlier. Now it's WAY too late. I'm bagged now!)

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[SchiffKnowsBest]

Nice find Silverwhere.  That is possible.  But why did all the GWY newsflow start when Eco Oro released their issues?  Maybe that meant the deal was off until they got things sorted out?  As well, why the middle man with BMO?  Why not get this grant straight from them and pay off the vendors?

[CWGriswold]

Its a good thought Silverwhere and good digging, but if this were the case you can be sure that every junior explorer out there would be doing this instead of placements.  Galway is the first one i've ever seen do something like this.

[admantine69]

I agree however the collateral to the loan is in place and must be guaranteed.