Galway raises $25M for Colombia

Galway Resources (gwy-v) has released several significant gold-silver hits from its California project in Colombia just as it announces a $25-million financing.
The latest results come largely from the Pie de Gallo zone, a 300-metre-long historic open pit, with some drilling also conducted on the Northeast zone, which sits on the eastern boundary of the California project. The Northeast zone also happens to sit adjacent and along strike to Ventana Gold’s (ven-t) La Bodega/La Mascota gold property, while Greystar Resources’ (gsl-t) Angostura project is 3 km northeast.  
From Pie de Gallo, hole 62 cut 24 metres at 8.42 grams gold from 78 metres downhole and 4.5 metres carrying 20.04 grams gold from 242 metres; hole 56 hit 10.5 metres of 5.18 grams gold from 79 metres; hole 57 returned 4.5 metres of 10.86 grams gold from 38 metres depth; and hole 59 cut 25 metres of 2.41 grams gold and 227.69 grams silver.
From the Northeast zone, hole 55 returned 70 metres averaging 1.73 grams gold and 18 grams silver from 39 metres, and hole 58 cut 96 metres of 1.65 grams gold and 17.54 grams silver.
The 5.6-sq.-km California project also hosts the San Celestino zone, which sits 1 km southwest along strike to the Northeast zone. The latest release did not include any results from that zone, but in the past Galway has pulled 11 metres of 9.9 grams gold and 7.2 metres at 7.6 grams gold.
The day after releasing the latest results, Galway announced the $25-million financing consisting of 25 million units at $1 apiece. Units hold both a share and a half-warrant, with full warrants exercisable at $1.50.
 At the same time, the company announced it intends to spin out its Vetas gold project into a newly-formed, wholly-owned subsidiary. Galway only secured the mostly contiguous 5.4 sq. km that forms the Reina de Oro and Coloro properties, also known as the Vetas project, last January.
 The project hosts the El Volcan mine, for which Galway had been working to secure drilling permits. The site sits roughly 8 km southwest of the California trend, and Galway expects to start drilling in the upcoming months. Further details on the spin-out are pending.
Along with spinning out the Vetas project, Galway reiterated that it holds fractional concessions within Ventana’s project, including a 360-metre-long concession within the main La Mascota structure. Galway cited the recent $1.2-billion unsolicited bid for Ventana as the reason for the reminder.
Galway gained control of the fractional concessions, along with the California project, last May. The two land deals near the start of 2010 marked a major refocusing of the company, switching from molybdenum-tungsten to Colombian gold.  
Galway’s share price closed up 11¢ at $1.11 the day the latest drill results were released, closing the next day at $1.12. The company has a 52-week trading range between 63¢ and $1.80, and 81 million shares outstanding.