Galahad Metals Inc.
TSX VENTURE : GAX

Galahad Metals Inc.

October 02, 2009 16:58 ET

Galahad Metals Announces Private Placement

OTTAWA, ONTARIO--(Marketwire - Oct. 2, 2009) - Galahad Metals Inc (TSX VENTURE:GAX) is pleased to announced that the Company plans to issue up to 8,000,000 non-brokered units at a price of $0.10 per unit, with each unit comprised of one common share and one common share purchase warrant, each whole warrant is exercisable at a price of $0.15 per common share from the date of issue up to and including September 30, 2010 and at a price of $0.20 per common share from October 1, 2010 up to and including September 30, 2011. The warrants will have a Forced Exercise Provision whereby if the closing price for the Company's common shares is $0.30 or greater for a period of 10 consecutive trading days between the date of issue and September 30, 2010 or $0.40 or greater for a period of 10 consecutive trading days between October 1, 2010 and September 30, 2011, the warrant holders will have 30 days to exercise their Warrants; otherwise the Warrants will expire on the 31st day.

The Company will pay a cash finder's fee of 5% of the gross proceeds raised. In addition, the Company will issue 5% Finder's Broker's Warrants, each Broker Warrant entitling the holder thereof to acquire one common share at a price of $0.15 per common share from the date of issue up to and including September 30, 2010 and at a price of $0.20 per common share from October 1, 2010 up to and including September 30, 2011 and subject to the Forced Exercise Provision mentioned above.

Proceeds raised will be used for working capital.

For further information, please go to www.galahadmetals.com.

"The statements in this Press Release may contain forward looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has not approved or disapproved of the information contained in this Press Release."

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