Galway Metals (TSX-V:GWM) has entered into an agreement for a C$14 million ($13.98 million) brokered private placement led by strategic investor Michael Gentile.
Under the terms of the placement, the company will issue up to approximately 19.44 million flow-through units at C$0.72 per unit through sole agent Beacon Securities. Each unit comprises one flow-through common share and one new warrant exercisable at C$0.80 for 36 months from closing.
Gentile has agreed to subscribe for 17.15 million units, representing approximately 88% of the offering, and will enter into a 12-month lock-up agreement. Upon completion, he is expected to own approximately 11.04% of the company’s issued shares, or 19.9% assuming warrant exercise.
CEO Robert Hinchcliffe says the company is ‘extremely pleased’ to welcome Gentile as a ‘significant’ strategic investor.
“Michael shares our vision for the significant potential of our two Canadian projects and has a strong track record of identifying and supporting high-quality opportunities in the junior mining sector,” Hinchliffe says.
The company intends to use the proceeds to incur eligible Canadian exploration expenses at its Clarence Stream Gold Project in New Brunswick on or before 31 December 2027. All qualifying expenditures will be renounced to subscribers effective 31 December 2026.
The offering is expected to close on or about 14 October 2026, subject to TSX Venture Exchange approval and other conditions. Securities will be subject to a four-month hold period under Canadian securities laws.
Galway Metals is a Canadian mineral explorer and developer focused on advancing its Clarence Stream Gold Project in New Brunswick.
Write to Paula Fabe at Mining.com.au
Main image: Galway Metals
