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Galleon Gold more than doubling recent fund raise for West Cache

Apr 17, 2024

Galleon Gold Corp. has announced that the non-brokered private placement of convertible debentures disclosed on April 12, 2024 is fully subscribed. The company expects to close the second and final tranche of the financing on or around April 19, 2024.

Due to additional interest in the Financing, the company announces that it has initiated a new financing for gross proceeds of up to C$1,500,000.

The Offering

Each Debenture Unit consists of $1,000 in principal of convertible debentures (the "Debentures") and 3,030 common share purchase warrants (the "Warrants") of the Company. Each Warrant will be exercisable to acquire one common share of the Company (a "Warrant Share") for a period of three years (3) from the date of issuance at an exercise price of $0.25 per Warrant Share. The Debentures will bear interest at a rate of 7.5% per annum from the date of issuance (the "Issue Date") until the Maturity Date (in each case calculated on the basis of a 365-day year; 366 days in a leap year) calculated and payable semi-annually in arrears and will have a three-year (3) term (the "Term"). Holders shall have the option to cause the Corporation to redeem the Debentures on the 24-month anniversary of the Debentures by providing written notice to the Corporation at least 15 days prior to the 24-month anniversary of the Debentures.

During the Term, the Company will have the option to (i) pay interest payments in cash or (ii) make payments-in-kind by way of issuance of common shares of the Company (the "Common Shares") at a price equal to the market price of the Common Shares at the time the accrued interest becomes payable.

As security for the Debentures, the Company will grant the holders a security interest in the gold contained in an ore stockpile located on the Company's Golden Trove property. In particular, an interest in 0.333 ounces of contained gold for each $1,000 principal amount Debenture.

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 a conversion price equal to $0.185 per Common Share (the "Conversion Price").

Finders' fees consisting of a cash commission of 6% and 6% non-transferrable finders' warrants may be paid to certain finders. Some insiders of the Company intent to participate in the Offering. 

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 Offering may be completed in more than one tranche up to a maximum aggregate amount of C$1,500,000. The Debentures, Warrants and underlying Common Shares, will be subject to a hold period of four months and one day 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.

Correction to Finder's Warrants Announced April 12, 2024 

The Company announces that further to its press release dated April 12, 2024 the correct number of non-transferrable finders warrants paid in connection with the first tranche of the Financing is 231,636. Each finder's warrant entitles the holder to acquire one common share at a price of $0.165 per share over a two (2) year period ending April 12, 2026.

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 planning and permitting for an 86,500-tonne underground bulk sample.

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