Galleon Gold Announces Sale of Non-Core Quebec Properties
Galleon Gold Announces Sale of Non-Core
Quebec Properties
Toronto, Ontario--(Newsfile Corp. - May 4, 2021) - Galleon Gold Corp. (TSXV: GGO) (the "Company" or
"Galleon Gold") is pleased to announce it has entered into an agreement (the "Agreement") to sell its
non-core Quebec properties (the "Properties") to a private company, Quebec Aur Ltd. ("Quebec Aur").
Pursuant to the terms of the Agreement, Quebec Aur has paid $250,000 and will issue to the Company
600,000 common shares of Quebec Aur (the "Quebec Aur Shares"), to obtain 100% ownership of the
Properties. The Properties included in the Agreement are the East Bay, Destor and Nelligan Properties.
Quebec Aur has entered into a Letter of Intent with a publicly listed TSX Venture Exchange listed
company ("PublicCo") whereby Quebec Aur will be acquired by PublicCo and each Quebec Aur Share
will be exchanged for one share of PublicCo. The price of the PublicCo common shares is currently at
$0.25. If the acquisition of Quebec Aur by PublicCo is not completed by September 15, 2021, Quebec
Aur shall, at its election, pay to Galleon Gold $150,000 or Quebec Aur shall transfer the Properties back
to Galleon Gold. In addition, Quebec Aur has granted a 1% net smelter returns royalty (the "NSR") on any
of the Properties' claims that do not have an existing royalty. The NSR can be repurchased by Quebec
Aur for one million dollars.
The Quebec Aur Shares are subject to a hold period under applicable Canadian securities laws until the
date that is four months and a day after the later of: (i) the issuance of the Quebec Aur Shares, and (ii)
the date Quebec Aur becomes a reporting issuer in any province or territory of Canada.
Note from the CEO-
R. David Russell CEO and President of Galleon Gold commented, "As we focus our efforts on the West
Cache Gold Project in Timmins, we are very pleased to have reached an arrangement that will drive
exploration on the Quebec properties.
Our exposure to the upside through our equity interest in a newly
formed Quebec based gold company ensures we will benefit from the development and growth of this
company going forward."
About Galleon Gold
Galleon Gold is a North American exploration and development company. Eric Sprott holds
approximately 23% of the Company's outstanding common shares and is also the Company's partner on
the Neal Gold Project in Idaho. A Preliminary Economic Assessment is currently underway for the
Company's flagship project, the West Cache Gold Project, located 13 km from Timmins, Ontario.
For further information:
Galleon Gold
R. David Russell
Chairman and CEO
T. (416) 644-0066
www.galleongold.com
Forward-Looking Statements
Some of the statements contained herein may be forward-looking statements which involve known and
unknown risks and uncertainties. Without limitation, statements regarding the terms and timing of the
sale of the Properties, the acquisition of PublicCo. common shares, potential mineralization and
resources of Galleon Gold's properties, exploration results, expectations, plans, and objectives of
Galleon Gold are forward-looking statements that involve various risks. There is no guarantee that
Quebec Aur will be acquired by PublicCo and Galleon Gold may not receive common shares of
PublicCo in exchange for the Quebec Aur Shares. 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, risks
inherent in mineral exploration, risks associated with development, construction and mining operations,
the uncertainty of future exploration activities and cash flows, and the uncertainty of access to additional
capital. 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/82765
.