Galway (GWM, TSX-V) Pushes The Pedal To The Metal At Clarence Stream!

My oh my, this new development really is quite something.

We recommended GWM several months ago, just prior to a +100% move, for a few specific reasons.  Namely because CEO Robert Hinchcliffe was religiously buying stock in the open market and Galway’s pending news of assays with “VG” (visible Gold) from Clarence Stream, a highly prospective new discovery in eastern Canada (New Brunswick).  Late in December I was somewhat surprised by Hinchcliffe’s decision to raise $3.3 million, considering Galway had approximately $3 million cash in bank (but there’s also an argument that exploration companies should take the money whenever it’s available).

That upped Galway’s cash position to around $6 million or more (all set for 2019 and beyond).

So you can imagine my surprise – I couldn’t be the only one – when Galway announced last Thursday that it’s raising another $3 million!

Shares of GWM have been under some pressure, on light volume, since mid-February, but I see this price action between 25 and 40 cents as consolidation.  Another leg higher should follow.  And this PP has actually served to support GWM’s share price thus far because the terms are somewhat favorable.  Hard dollar units will be sold for 30 cents each, a premium at the moment to the market.  Also, the news attracts some speculators into GWM.  They can start speculating on who wants in (maybe a notable strategic investor?) and what lineup of drill results will soon follow.

As per the news release, proceeds of the offering will be used to bring in a 2nd drill rig to the Clarence Stream Gold Project, for other exploration at Clarence Stream (thousands of soil samples, which are a great indicator there!), and for work at the Estrades Polymetallic Property located in the northern Abitibi of western Quebec.

In terms of leadership, this move to raise another $3 million shows Hinchcliffe isn’t afraid to push the pedal to the metal on a hot project.  He’s got a capital markets background, so he probably understands the market really well (this is a sign of that).  Jon says it all the time, as did the Pez, never stop drilling a hot project!  Drill, baby, drill!  So Hinchcliffe is going to stay at the table as long as this hot streak continues, a smart decision – I’m betting the Clarence Stream story will end with a big buyout.

Then with Galway, next to the markets guy Hinchcliffe, you’ve got Chief Geologist Michael Sutton.  This guy seems to have a nose for finding mineralization and economic deposits.  Sutton’s been awarded Prospector-Of-The-Year in Ontario and he’s played integral roles with more than one successful exploration company, including the earlier days at Kirkland Lake (KL, TSX).

Bottom Line:  Galway has a well rounded leadership team, they’re proven winners.  Cash and project rich, it should be a fun year for those who own GWM.  Lots of news flow.  I’m looking for more good numbers and new discoveries at Clarence Stream.  Plus there’s a PEA to be published on Estrades, possibly a new discovery, too.  Galway’s going to be drilling a large anomaly south of Estrades – it looks quite similar to the existing deposit.