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Galleon Gold announces update to C$8.0 Million Private Placement

Sep 22, 2020

Galleon Gold Corp. reports that its previously announced brokered private placement will now consist of up to C$3.5 million of units at a price of C$0.12 per Unit and the remaining balance in flow-through units 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.

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.

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