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Private Investor(s?) pump $3M into Galleon

Apr 29, 2020

Galleon Gold Corp. has secured a non-brokered private placement of up to C$3.0 million. The deal is through the issuance of a combination of units at a price of C$0.05 per and flow-through common shares at a price of C$0.06. 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 Company's flagship project, the West Cache Gold Project, is located 13 km from Timmins Ontario, is on trend with other major mines in the area, and also hosts a million-ounce gold resource.

Each Unit will consist of one common share in the capital of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall entitle the holder to acquire an additional common share at a price of C$0.075 for a period of 24 months following the closing of the Offering. 

The closing of the Offering is expected to occur on or about May 20, 2020 and is subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The FT Shares, securities comprising the Units and any finders' warrants issued with respect to the Offering, will be subject to a hold period of four months and one day in accordance with applicable securities laws.

About Galleon Gold

Galleon Gold is a North American exploration and development company. Eric Sprott holds approximately 27% of the Company's outstanding common shares and is also the Company's partner on the Neal Gold Project in Idaho.

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