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Galleon Gold raising up to $8million for Timmins West Cache Project

Sep 18, 2020

Galleon Gold is raising money for its promising West Cache gold project just west of Timmins. The company has entered into an agreement with Red Cloud Securities Inc., as lead agent and sole bookrunner, on its own behalf and, if applicable, on behalf of a syndicate of agents in connection with a best efforts private placement for aggregate gross proceeds of up to C$8.0 million. The Offering will be comprised of the following:

  • up to C$3.0 million of units of the Company (the "Units") at a price of C$0.12 per Unit; and 
  • up to C$5.0 million of flow-through units of the Company (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.

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 effective 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 Exemptionsin 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 or about the week of October 14, 2020 and is subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The securities 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. 

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.

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