Galway Resources Ltd.

Galway Resources Ltd.

September 11, 2009 16:54 ET

Galway Resources Increases Size of Private Placement to $12.0 MM

TORONTO, ONTARIO--(Marketwire - Sept. 11, 2009) -


Galway Resources Ltd. (the "Company") (TSX VENTURE:GWY) is pleased to announce that it has agreed to increase the size of the previously announced private placement offering (the "Offering") by 4,000,000 units to 24,000,000 units (the "Units") to be issued at a price of $0.50 per Unit for aggregate gross proceeds to the Company of $12,000,000. All other terms of the Offering remain the same. The Offering was previously announced in a news release issued by the Company on September 9, 2009. Each Unit will be comprised of one common share and one-half of a common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase an additional common share for a period of two years at a price of $0.75 per warrant. GMP Securities L.P. and M Partners Inc. are co-lead agents for the Offering.

The closing of the sale of the Units is expected to occur on or about September 29, 2009 and is subject to the approval of the TSX Venture Exchange. All of the securities issued pursuant to the private placement will be subject to a hold period expiring four months and a day after the closing date.

Proceeds of the private placement will be used to fund ongoing exploration programs and for general corporate purposes.

About Galway Resources

Galway Resources is a mining company with several sizeable assets in different stages of exploration and development. The Company holds a significant land package in Colombia's California Gold Trend. The properties are located 1.1 kilometers south-west of Ventana's La Bodega project, and 3.0 kilometers from Greystar's Angostura project, and are along strike. Xstrata's Colombian coal subsidiary Prodeco, recently signed an agreement with Galway whereby they will fund the all drilling at the GALCA coal project. Drilling is expected to begin in October 2009. Galway has engaged John Tumazos of Very Independent Opinion to commercialize the Victorio molybdenum-tungsten project located in south-western New Mexico, USA.

Forward Looking Statements:

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, development and production activities, future studies and reports, and future expenditures. 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 use of proceeds, the timing and success of future exploration, development and production activities the timing and completion of future reports and studies, and the timing and amount of expenditures

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information