Galleon Gold Completes $7.5M Oversubscribed Private Placement of Convertible Debentures
Galleon Gold Completes $7.5M
Oversubscribed Private Placement of
Convertible Debentures
Toronto, Ontario--(Newsfile Corp. - July 18, 2025) -
Galleon Gold Corp.
(TSXV: GGO) (FSE: 3H90)
(the "
Company
" or "
Galleon Gold
") is pleased to announce that it has closed the second and final
tranche of its non-brokered private placement offering of convertible debentures (the "
Offering
")
previously announced on July 2, 2025 and July 7, 2025. The Company has issued 20 convertible
debentures (the "
Debentures
") for gross proceeds of $1,000,000.
The total gross proceeds from the
Offering is $7,500,000.
The Offering
The Debentures have a term of 36 months (the "
Term
") from the date of issuance, bear interest at a rate
of 8.0% per annum payable in cash or Common Shares at the option of the investor at the end of the
Term. The Debentures are convertible into common shares of the Company (the "
Common Shares
") at
$0.30 per share (the "
Conversion Price
").
At any time during the Term, each holder of Debentures may elect to convert any portion of the principal
amount of the Debentures into Common Shares at the Conversion Price. If an investor exercises the
Debentures prior to the end of the Term the accrued interest to that date will be payable in Common
Shares and the price will be based on the higher of the average closing price of the last 20 trading days
or the closing market price.
Finders' fees consisting of a cash commission of $60,000 and 200,000 non-transferrable finders'
warrants have been paid in connection with this closing of the Offering. Each finder warrant entitles the
holder to acquire one common share at $0.36 per share over a two (2) year period.
The Company intends to use the proceeds raised from the Offering for the exploration and advancement
of the Company's West Cache Gold Project in Timmins, Ontario and for general working capital
purposes.
The Debentures, finder's warrants, and if applicable, the underlying Common Shares, will be subject to a
hold period of four months and one day from the date of closing in accordance with applicable securities
laws. The Offering is subject to the final acceptance of the TSX Venture Exchange.
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 an advanced exploration and development company focused on the West Cache Gold
Project in Timmins, Ontario.
The Project is located 7 km northeast of Pan American Silver's Timmins
West Mine and 14 km southwest of the Hollinger Mine. The Company is gearing up for its first test
mining at West Cache; the 86,500-tonne underground bulk sample is designed to produce 22,600
ounces of gold (prior to recoveries) and provide valuable data for pre-feasibility studies. Galleon Gold's
strategy is to systematically derisk the Project while continuing to grow the asset through grassroots
exploration.
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 the
Offering, the use of proceeds from the Offering, 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.
Not for distribution to United States Newswire Services or for dissemination in the United States
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https://www.newsfilecorp.com/release/259328