Galaxy Capital Corp.
TSX VENTURE : GXY

May 23, 2012 09:00 ET

Galaxy Capital Corp. Acquires Laurier Graphite Property in Ontario

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 23, 2012) - Galaxy Capital Corp. (TSX VENTURE:GXY) (the "Company" or "Galaxy") is pleased to announce that it has signed an agreement to acquire a 100-per-cent interest in the Laurier Graphite Property, Ontario.

Laurier Graphite Property

The Laurier Graphite property is located in Laurier Township, ON, approximately 40 km SSE of North Bay, ON. The property is located in the highly prospective Central Metasedimentary Belt of the Grenville geological province, host to many active graphite projects. The host rocks for the target zone are graphitic paragneisses. The property properties cover a total of approximately 2300 hectares on 46 mining claims.

The property was described in Ontario Geological Survey (OGS) Open File Report 5649, published in 1987. The report is entitled "Graphite in the Central Gneiss Belt of the Grenville Province in Ontario." The property has road access from Highway 11, which is 5 km to the west. The report describes four graphite occurrences, two of which are currently being prepared for production. These are referred to in the report as Butt Township (which is the Kearney Mine) and Maria Township (the Bissett Creek deposit).

Work performed on the Laurier property by the OGS described N-S trending graphitic schist units varying from 25 to 250m in width with 1.0mm (16 mesh) graphite flakes disseminated throughout. In addition, a 1-2m wide vein of massive graphite was reported.

The Company cautions that it has not verified the quality and accuracy of the historic data reported in this news release, which predate the introduction of National Instrument 43-101 and cautions readers not to rely upon them. The historic information was generated from the OGS report cited above. This source is believed to be reliable; however, it has not been confirmed by the company's Qualified Person.

A field program, consisting of ground geophysics (VLF/Mag), prospecting, mapping and sampling, is planned for June 2012.

Chris Healey, President of Galaxy commented, "With this acquisition, along with the Sun and Buckingham graphite properties previously announced, Galaxy now has an excellent portfolio of quality graphite projects. With the recently closed financing, Galaxy is in a position to aggressively explore these projects starting in the coming weeks and to expedite them to an advanced stage."

Update on Other Properties

SUN Property, NW of Baie-Comeau: field work on this property is expected to commence in late May, consisting of mapping, prospecting and sampling, to define drill targets. This will be followed by a 3000 metre summer diamond drill program.

Buckingham, East of Ottawa: Field work will commence in late May with a helicopter-borne EM/Mag survey, followed immediately by ground follow-up.

Terms

Galaxy has an option to earn a 100-per-cent interest in the Laurier Graphite Property, Ontario from Gino Chitaroni by making the following payments and issuing the following common shares to the vendors: i) $10,000 upon signing the letter agreement (paid), ii) $40,000 and 1,000,000 common shares on receipt of the TSX Venture Exchange ("TSX-V") acceptance of the agreement, iii) and $50,000 and 500,000 common shares twelve months from TSX-V acceptance.

The vendor will retain a 2-per-cent net milling royalty on the property, half of which can be purchased by Galaxy for C$1,000,000 and a further quarter for $500,000.

Chris M. Healey P.Geo, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical content of this release.

ON BEHALF OF THE BOARD

Chris M. Healey, President and CEO

We seek safe harbor.

Neither 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

  • Galaxy Capital Corp.
    Chris M. Healey
    President and CEO
    (604) 921-1810
    (604) 921-1898 (FAX)