Galway reports Xstrata begins drilling at the Galca coal project in Colombia
"We are very pleased that our joint venture partner Prodeco has begun the drilling program, which could be very exciting. This area has the potential to host several new coal deposits with great existing infrastructure. The upside could be tremendous," cites
Terms of the Transaction
The terms of the GALCA exploration and joint venture agreement include the following: Prodeco will fund the first 19 drill holes, and in consideration for agreeing to fund the feasibility drilling program, will be granted a 60% equity interest in the project. Prodeco will then earn the remaining 40% equity interest in the project by paying Galway an already agreed value per tonne of economically mineable open-cut reserves determined in accordance with the JORC Code, up to US$70 million.
GALCA Project
The GALCA project comprises 77 concessions (132,000 hectares) and is located in the
Extensive analysis of various seismic data and other geological studies derived from petroleum drilling carried out over the years, have been conducted. Geological analysis indicates the presence of coal and this land package was put together targeting the areas where it is believed that coal is closest to the surface. As such, the focus for the 19 hole drilling program will be on the more prospective northern and southeastern flanks. Click here to see the location of the 2 priority areas for drilling: http://www.galwayresources.com/i/pdf/Areas_of_Interest.pdf
Colombian Coal Overview
Changes to the Board of Directors
The Company also reports the resignation of
About the Company
Galway Resources is a well capitalized company, primarily focused on the exploration of gold and coal in
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.
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 the completion of transactions, the possibility of coal deposits, future exploration, development and production activities, future expenditures and forecast Colombian coal production. 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, without limitation, the timing and success of contemplated transactions and exploration, development and production activities, the realization of coal deposits, the timing and amount of expenditures and actual realized Colombian Coal production. See the "risk factors" set out in Galway's management's discussion and analysis files on the SEDAR website.
For further information: Galway Resources Ltd., Robert Hinchcliffe, President and Director, 1-800-475-2412, www.galwayresources.com
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