Galleon Gold Announces Interest Payment on Convertible Debentures
Galleon Gold Announces Interest Payment on
Convertible Debentures
Toronto, Ontario--(Newsfile Corp. - October 30, 2024) -
Galleon Gold Corp.
(TSXV: GGO)
(the
"
Company
" or "
Galleon Gold
") reports that under the terms of the convertible debentures (the
"Convertible Debentures") issued on April
12, 2024,
April 19, 2024 and April 29, 2024 (
see news
releases dated April 12, 19, and 29, 2024)
it has elected to satisfy its obligation to pay interest accrued
by issuing common shares (the "Common Shares").
Under the terms of the Convertible Debentures, no fractional Common Shares will be delivered upon
payment of the interest obligation.
The Common Shares will be priced based on the greater of the
Market Price (as defined in the policies of the TSXV) and the 15-day volume weighted average closing
price of the Common Shares on the TSXV.
The issuance of Common Shares in payment of interest remains subject to the approval of the TSX
Venture Exchange (the "Exchange"). The Common Shares to be issued in respect of the Interest
Payment will be subject to a hold period of four months from the date of issuance.
Convertible Debentures issued on April 12, 2024 and April 19, 2024
An aggregate of $110,722.61 in interest accrued on the C$3.0 million Convertible Debentures will be
satisfied by issuing to such debenture holders for the interest payment due October 12, 2024 and
October 19, 2024 an aggregate of 377,588 common shares of the Company.
An insider of the Company is a holder of Convertible Debentures.
As a result, the Interest Payment is
considered to be a "related party transaction" under Multilateral Instrument 61-101 - Protection of
Minority Security Holders in Special Transactions ("MI 61-101").
The Interest Payment in respect of this
individual is exempt from the minority approval and formal valuation requirements of MI 61-101 pursuant
to subsections 5.5(b) and 5.7(1)(a) of MI 61-101 as neither the fair market value of the debt, nor the fair
market value of the shares to be issued in settlement of the debt, exceeds 25% of the Company's market
capitalization.
Convertible Debentures issued on April 29, 2024
An aggregate of $53,019.86 in interest accrued on the C$1.41 million Convertible Debentures will be
satisfied by issuing to such debenture holders for the interest payment due October 29, 2024 an
aggregate of 187,208 common shares of the Company.
Certain officers and an
insider and of the Company are holders of the Convertible Debentures.
As a
result, the Interest Payment is considered to be a "related party transaction" under Multilateral Instrument
61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101").
The Interest
Payment in respect of this individual is exempt from the minority approval and formal valuation
requirements of MI 61-101 pursuant to subsections 5.5(b) and 5.7(1)(a) of MI 61-101 as neither the fair
market value of the debt, nor the fair market value of the shares to be issued in settlement of the debt,
exceeds 25% of the Company's market capitalization.
About Galleon Gold
Galleon Gold is an advanced exploration and development company focused on the West Cache Gold
Project in Timmins, Ontario.
The West Cache Gold Project is located 7 km northeast of Pan American
Silver's Timmins West Mine and 14 km southwest of Newmont's Hollinger Mine.
A 2022 Preliminary
Economic Assessment (PEA) for the Project demonstrates strong economics. The Company is in the
process of submitting permit applications for an 86,500-tonne underground bulk sample.
For further information:
Galleon Gold
R. David Russell
Chairman and CEO
T. (416) 644-0066
www.galleongold.com
Forward-Looking Statements
This news release contains certain "forward looking statements", as defined under applicable Canadian
securities laws, that reflect the current views and/or expectations of Galleon Gold with respect to its long-
term strategy, proposed work, plans, bulk sample program and other reports including the PEA for its
projects.
Forward-looking statements are based on the then-current expectations, beliefs, assumptions,
estimates and forecasts about the business and the markets in which Galleon Gold operates.
Some of
the statements contained herein may be forward-looking statements which involve known and unknown
risks and uncertainties.
Without limitation, statements regarding potential mineralization and resources,
exploration results, expectations, plans, and objectives of Galleon Gold are forward-looking statements
that involve various risks.
The following are important factors that could cause Galleon Gold's actual
results to differ materially from those expressed or implied by such forward-looking statements: changes
in the world-wide price of mineral commodities, general market conditions and uncertainty of access to
additional capital, risks inherent in mineral exploration, delays in the receipt of government approvals,
risks associated with development, construction, mining operations and third party contractor activities,
risks related to unanticipated events related to health, safety and environmental matters. There can be no
assurance that forward-looking statements will prove to be accurate as actual results and future events
may differ materially from those anticipated in such statements.
Galleon Gold undertakes no obligation to
update such forward-looking statements if circumstances or management's estimates or opinions should
change.
The reader is cautioned not to place undue reliance on such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/228382