High-Grade Gold-Zinc Project Attracts Major International Partner in US$25M Deal
Galway Metals Inc. (GWM:TSX.V; GAYMF:OTCQB) has entered into a binding option and joint venture term sheet with Japan-based Dowa Holdings Co. Ltd. for its Estrades Project in Quebec. The staged agreement allows Dowa to earn up to a 45% interest and full zinc offtake rights through US$25 million in funding.
Galway Metals Inc. (GWM:TSX.V; GAYMF:OTCQB) has entered into a binding option and joint venture term sheet with Dowa Holdings Co., Ltd. (5714.T), a Japan-based global non-ferrous metals producer. Under the terms, Dowa can earn up to a 45% participating interest in Galway's 100%-owned Estrades gold and zinc project in the Abitibi region of Quebec. The agreement also provides Dowa with rights to offtake zinc concentrate produced from the project.
According to the announcement, Dowa's potential investment would be staged across three phases totaling up to US$25 million. In the initial phase, Dowa will invest US$5 million for a 10% participating interest and the right to purchase 50% of Galway's zinc concentrate production. Phase 2, upon successful completion of the first stage and execution of definitive agreements, would allow Dowa to earn a total 30% interest by investing an additional US$10 million. Zinc offtake rights would increase to 75%, and Galway would operate the joint venture, receiving a 6% management fee on approved expenditures during Phase 2.
If Dowa proceeds to Phase 3, it would contribute another US$10 million, increasing its interest to 45% and gaining 100% of the zinc offtake rights. This stage would support a feasibility study on the project.
"We are very pleased to partner with one of the world's most respected integrated mining and metals companies," said Galway CEO Robert Hinchcliffe in the news release. "Their commitment to funding up to US$25 million across three earn-in phases validates the quality and potential of Estrades."
The Estrades Project is a former producing, high-grade gold-zinc mine with existing underground infrastructure and historical production averaging 6.4 grams per tonne (g/t) gold, 172.3 g/t silver, 12.9% zinc, and 1.1% copper over an 18-month period in the 1990s. Galway has initiated a scoping study for the project, expected to be released following recent metallurgical improvements that increased gold recoveries from 58% to 88%.
Zinc Stabilized While Gold Surged on Geopolitical and Monetary Turmoil
According to a January 2 report from Investing News Network, zinc prices closed 2025 with a modest rebound after a volatile year marked by a mid-year downturn and continued supply surplus. Zinc started the year at US$2,927 per metric ton and dropped to US$2,562 in April before gradually recovering to end at US$3,088 in December. The report noted that zinc demand remained largely driven by the housing and manufacturing sectors, both of which were strained by high inflation and interest rates. Dean Belder wrote that "additional pressures have come from evolving U.S. trade policies," which created investor uncertainty and reduced consumer spending.
Meanwhile, the gold market saw a significant uptick in early 2026 amid rising geopolitical tensions and questions surrounding the independence of the U.S. Federal Reserve. A January 12 article from Bloomberg reported that Citigroup raised its near-term gold price target to US$5,000 per ounce, stating that "the crisis at the US central bank is a gift for precious-metals bulls." The bank attributed its revision to "renewed uncertainty over the Federal Reserve's independence," which contributed to strong inflows into bullion-backed ETFs as gold touched a new record high.
Also on January 12, Jeff Thomas of The International Man addressed risks tied to non-physical forms of gold ownership. Thomas warned that "the buyer is under the impression that he has bought the actual product, when he has not," referring to many ETFs that operate on a "promise of future ownership." He emphasized that "paper gold... is very risky," and added that "the ownership of physical gold is certainly better, in spite of the storage problem."
A separate January 12 report from Couloir Capital noted that gold prices had risen 4.2% during the prior week and added another 2.0% the following Monday. The firm attributed the climb to "escalating geopolitical tensions" and "sustained central bank buying," pointing to increased U.S. activity in Venezuela and Iran, as well as Greenland-related rhetoric, as contributing factors. The report stated that this environment offered structural support for gold as investors continued to favor defensive assets.
Third-Party Expert Analysis: Growing Confidence in Galway's Revaluation
According to John Newell of John Newell & Associates in a January 12 commentary, Galway Metals Inc. appeared to be benefiting from what he described as a broader "regime shift" in the CDNX rather than a late-cycle rally, which he said was supported by "one of the longest and most constructive base structures in its history." Newell argued that the setup was driven by time, symmetry, and compression rather than short-term momentum, suggesting a more durable market transition.
Newell noted that Galway combined advanced-stage development with meaningful exploration upside across multiple Canadian jurisdictions, adding that the company controlled defined gold resources while continuing to advance projects with established geology and scale. Reviewing trading patterns, Newell observed that the chart showed "a repeating pattern of accumulation, breakout, and consolidation," which he interpreted as a gradual revaluation of the company's asset base. He further stated that with "higher lows firmly established and momentum improving," Galway fit "the profile of a junior transitioning from neglect to recognition as confidence returns to the CDNX," highlighting improving technical conditions alongside the company's underlying project portfolio.
Strategic Partnership Strengthens Galway's Base Metals Position
The Dowa agreement positions Galway Metals to advance Estrades alongside an experienced global partner with specialized knowledge in zinc concentrate processing. According to the company's November 2025 corporate presentation, the Estrades project spans three geological horizons and lies within a 31-kilometer strike length in a region that includes major gold operations like Hecla's Casa Berardi and Agnico/Maple's Douay. Two mills are located within trucking distance of the property.
Streetwise Ownership Overview*
Galway Metals Inc. (GWM:TSX.V; GAYMF:OTCQB)
*Share Structureas of 1/7/2026The scoping study, which follows a 31% increase in gold recovery rates, is one of several upcoming catalysts for Galway. The company is also progressing at its flagship Clarence Stream Project in New Brunswick, where it reported gold recoveries of up to 98% and antimony recoveries of up to 88% in metallurgical testing. Resource expansion drilling is ongoing, and an updated mineral resource estimate for Clarence Stream is planned for mid-2026.
Galway Metals continues to operate with no debt and completed a CA$12 million financing in late December 2025.
Ownership and Share Structure1
Insiders own 7.46% of Galway, of which President/CEO Hinchcliffe, the No. 1 shareholder, has 6.76%. Eight institutions have 18.88%. Of these, the Top 3 are Van Eck Associates Corp. with 4.54%, Caisse de Depot et Placement du Quebec with 3.4% and Mackenzie Investments with 3.35%. Retail investors own the rest.
Galway has 125.76 million shares outstanding. Its market cap is CA$71.24M. Its 52-week range is CA$0.32-0.93/share.
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Important Disclosures:
Galway Metals Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Galway Metals Inc. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.
1.Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.