Galleon Gold Announces Update to C$8.0 Million Brokered Private Placement
Galleon Gold Announces Update to C$8.0
Million Brokered Private Placement
Toronto, Ontario--(Newsfile Corp. - September 22, 2020) - Galleon Gold Corp. (TSXV: GGO) (the
"
Company
") is pleased to announce that its previously announced brokered private placement will now
consist of up to C$3.5 million of units (the “
Units
”) at a price of C$0.12 per Unit and the remaining
balance in flow-through units (the “
FT Units
”, and collectively with the Units, the “
Offered Securities
”) to
traditional flow-through purchasers at a price of C$0.135 per FT Unit and to charitable flow-through
purchasers at a price of C$0.17 per FT Unit, for total gross proceeds of up to C$8.0 million (the
“
Offering
”).
Each Unit will be comprised of one common share of the Company (a "
Common Share
") and one
Common Share purchase warrant (each, a "
Warrant
"). Each FT Unit will be comprised of one flow-
though common share of the Company (a "
FT Share
") and one Warrant. Each Warrant will entitle the
holder to purchase one Common Share at a price of C$0.18 at any time on or before the date which is
36 months after the closing date of the Offering.
The proceeds from the sale of the Units will be used for exploration and general working capital
purposes. The proceeds from the issuance of the FT Shares will be used for "Canadian exploration
expenses" and will qualify as "flow-through mining expenditures" (the "Qualifying Expenditures"), as
defined in subsection 127(9) of the Income Tax Act (Canada). The Company intends to renounce the
Qualifying Expenditures to subscribers of FT Shares for the fiscal year ended December 31, 2020.
The Offered Securities will be offered by way of the "accredited investor" and "minimum amount
investment" exemptions under National Instrument 45-106 -
Prospectus Exemptions
in each of the
provinces of Canada, offshore jurisdictions and in the United States on a private placement basis
pursuant to one or more exemptions from the registration requirements of the
United States Securities
Act of 1933
, as amended.
The Offering is scheduled to close on October 14, 2020 and is subject to receipt of all necessary
regulatory approvals, including the approval of the TSX Venture Exchange. The common shares of the
Company issuable from the sale of Offered Securities will have a hold period of four months and one day
from the closing of the Offering in accordance with applicable securities laws.
This news release does not constitute an offer of securities for sale in the United States. The securities
being offered have not been, nor will they be, registered under the United States Securities Act of 1933,
as amended, and such securities may not be offered or sold within the United States absent U.S.
registration or an applicable exemption from U.S. registration requirements.
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. The Company's flagship project, the West Cache Gold Project, is located
13 km from Timmins, Ontario.
FOR FURTHER INFORMATION:
Galleon Gold Corp.
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 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, 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.
Not for distribution to United States newswire services or for dissemination in the United States
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https://www.newsfilecorp.com/release/64321