Galway Metals Corporate Update Galway Metals Corporate Update (ccnm)
TORONTO, ONTARIO--(Marketwired - May 20, 2015) - Galway Metals Inc. (TSX VENTURE:GWM) ("Galway") is pleased to provide a corporate update on its people, activities and governing strategy. Galway Metals was incorporated as part of a Plan of Arrangement involving Galway Metals, Galway Gold Inc., Galway Resources Ltd., AUX Acquisition 2 S.àr.l. ("AUX") and AUX Canada Acquisition 2 Inc., which closed on December 20, 2012.
Under the Arrangement, which was negotiated by current Galway Metals management and directors, AUX Canada acquired all of the common shares of Galway Resources not already owned by AUX Canada and its affiliates and pursuant to the Arrangement, Galway Resources shareholders received for each Galway common share: cash consideration of Cdn$2.05 per share, one common share of Galway Metals, and one common share of Galway Gold Inc. Under the Arrangement, Galway Resources transferred to Galway Metals Galway Resources' Victorio project, a molybdenum-tungsten exploration project located in New Mexico and approximately US$12 million cash (cash balance at December 31, 2014 was US $11.1 million).
Galway's People, Activities and Governing Strategy
The plan of Galway's Board is to preserve its cash balances and sensibly seek opportunities in the mining sector where acquisition values are currently depressed. Galway believes the Company's capital is best spent only on projects in which management is convinced that the geology is highly likely to host an economically viable reserve, and where social attitudes and political policies are likely to support mine development. The Company's Board does not believe there is any point in spending shareholder capital without having a reasonable expectation that the capital spent will ultimately yield a deposit worthy of development with strong stakeholder support.
Toward that end, while Galway's team has reviewed hundreds of projects since the company began trading in January 2013, it has conducted detailed analyses of more than 80 opportunities. Moreover, numerous Confidentiality Agreements have been undertaken, Letters of Intent have been signed, and presently several prospects are under serious consideration. Nonetheless, Galway would rather acquire a project that meets its criteria than lower its standards for appeasement purposes. Announcements will be made on the status of the Company's endeavours as they are advanced. Until, and even after, an acquisition, earn in, or other such value creating transaction occurs, the Company plans to continue to be prudent with its treasury.
The completion of a transaction that has the hallmarks of being able to deliver significant shareholder value takes time, patience and hard work. This is something Galway believes is possible with substantially the same management team and Board of Directors that guided Galway Resources into a $340 million acquisition after having spent only about $20 million on exploration and an even smaller amount on property acquisitions. Of note is that every investor that bought and held shares in Galway Resources until it was sold made money because the sale price represented an all-time high. The management and Board of Directors of Galway Metals is keenly intent on doing something similar to the Galway Resources deal once again.
Galway Management - Experience and Track Record
The Board of Galway Metals has endeavoured to assemble a team of directors that operates effectively and works with management in a productive way with the goal of increasing Shareholder value and directing the business and affairs of the Corporation in a manner consistent with its strategies and objectives. The relative skills that each member of the Board contributes must be carefully considered and balanced when deciding on the make-up of the Board as a whole.
Galway's management believes the Company has the requisite skills to source, evaluate, acquire and explore mining projects. As a group, Galway's directors beneficially own, control or direct, directly or indirectly, 10,338,201 Common Shares, representing approximately 18.1% of the issued and outstanding Common Shares as of the date hereof. Brief biographies of Galway's Board members are as follows:
FOR FURTHER INFORMATION PLEASE CONTACT:
Contact Information:
Galway Metals Inc.
Robert Hinchcliffe
Toll Free: 1-800-771-0680
416-361-0923 (FAX)
www.galwaymetalsinc.com