Galleon Gold Corp. has closed two private placements for combined gross proceeds of approximately $37 million, the company said in a press release. The funds will support work on its West Cache Gold Project in Timmins, Ontario, along with working capital and general corporate purposes.
The bought deal offering raised $30 million. It comprised 4,717,000 flow-through shares priced at $1.59 each, generating approximately $7.5 million, and 20,089,271 common shares priced at $1.12 each, generating approximately $22.5 million. The offering included the full exercise of an over-allotment option, which added 2,678,571 shares and $3 million in proceeds.
In a concurrent non-brokered placement, Pan American Silver Corp. purchased 6,250,000 common shares at $1.12 each for gross proceeds of $7 million.
Galleon Gold said proceeds from the flow-through shares will fund Canadian exploration expenses at West Cache. The expenditures will be incurred by December 31, 2027, and renounced to the initial purchasers with an effective date no later than December 31, 2026. Proceeds from the common share offerings will go toward advancing the project and for working capital and general corporate purposes.
ATB Cormark Capital Markets acted as lead underwriter and sole bookrunner for the bought deal, with Stifel Nicolaus Canada Inc. also participating. The underwriters received a cash commission of 6% of the bought deal’s gross proceeds; no commission was paid on the non-brokered placement.
The participation of Pan American and certain Galleon Gold directors and officers constitutes a related-party transaction. Directors and officers subscribed for 128,571 common shares in the bought deal, for aggregate proceeds of $143,999.52. The offerings remain subject to final acceptance by the TSX Venture Exchange.
Sources: Investing.com News.