Sprott Asset Management invests in Galway Resources



    /NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE
    SERVICES/

    ELKO, NV, April 26 /CNW/ - Galway Resources Ltd. ("Galway" or the
"Company") (TSX-V: GWY) announces that it has completed its previously
announced non-brokered private placement in the amount of 6,000,000 units at a
price of $0.85 per unit for gross proceeds of $5,100,000. As previously
announced, Sprott Asset Management accounted for substantially all of the
financing. More specifically, Sprott Asset Management subscribed for a total
of 5,882,353 units, of which 2,941,177 units have been subscribed by the
Sprott Molybdenum Participation Corporation.
    "The launching by Sprott Asset Management of the first ever Molybdenum
investment fund highlights in our mind the strategic importance of Molybdenum
and the favourable supply and demand fundamentals," said Robert Hinchcliffe,
the President of Galway, adding "We are very pleased that Galway with its
flagship Victorio Molybdenum-Tungsten project is one of the fund's early
investments."
    Each unit is comprised of one common share and one-half of one
non-transferable common share purchase warrant, each whole such warrant
exercisable for one additional common share at a price of $1.30 per share for
a period of 24 months from the date of closing. The warrants will be subject
to acceleration in the event the closing trading price of the common shares of
Galway on the TSX Venture Exchange is $1.75 per share or higher over a period
of 20 consecutive trading days beginning on the date that is four months and
one day after the date of issuance of the warrants.
    A 7% cash finder's fee was paid to Fort House Inc. in connection with the
financing.
    The securities are subject to a hold period and may not be traded until
August 26, 2007 except as permitted by Canadian securities legislation and the
TSX Venture Exchange.
    Galway intends to use the proceeds of the private placement to fund the
Company's 12 month work program on each of its three properties (Indian
Springs, Victorio and Lone Mountain), as recommended in the technical reports
prepared by SRK Consulting (U.S.), with the balance available for general
working capital purposes.

    About Galway Resources

    Management is focused on developing three U.S. based exploration projects
that are favourably located and have over 300,000 feet of historical drilling.
We have established a solid technical team that has compiled all the
historical data and are now advancing these projects in an aggressive but cost
effective manner. Management believes that its strategic portfolio of
properties offers investors an interesting exposure to a unique blend of
commodities (molybdenum, tungsten, copper and zinc).

    On behalf of the Board of Directors

    GALWAY RE

SOURCES LTD. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to the use of proceeds. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the ability to complete the contemplated use of proceeds.

For further information:

For further information: Rob Hinchcliffe, President and Director,
1-800-475-2412, www.galwayresources.com

Organization Profile

Galway Resources Ltd.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890