Galleon Gold completes $46 million Pan American financing
Galleon Gold Corp. [GGO-TSXV] said Tuesday it has completed a $46 million senior secured debt financing with Pan American Silver Corp. [PAAS-TSX, NASDAQ].
Funds drawn from the facility will be used to advance underground development and infrastructure required to complete a bulk sample program at Galleon’s West Cache Gold project in Timmins, Ont. An initial drawdown of $11 million will be used to fund the repurchase of the existing 3.0% net smelter return royalty on the project.
Terms of the facility include a 24-month maturity from closing with principal repayable at maturity subject to a prepayment provision after one year. The facility bears interest at a floating rate equal to the 12-month prime reference rate plus 7.00%, payable monthly in arrears.
The facility is secured by first-ranking security over substantially all of the company’s assets, including the West Cache project, subject to customary permitted encumbrances. An arrangement fee equal to 2.5% of the facility is also payable to Pan American, which has elected to receive the fee of $1.15 million in common shares. As a result, Galleon will issue 1.07 million common shares priced at $1.07 per share.
Galleon shares advanced on the news, rising 1.8% or $0.02 to $1.09. The shares trade in a 52-week range of $1.10 cents and 16 cents.
Prior to the issuance of the arrangement fee shares, Pan American owned 18.75 million common shares and 9.37 million warrants and the debenture (see details below) or 14.41% of the issued and outstanding shares on a non-diluted basis. Following the issuance of the arrangement fee, Pan American’s interest will rise to 15.11% on a non-diluted basis (29.67% partially-diluted).
On August 13, 2025, Galleon issued to Pan American an $8.0 million convertible debenture, convertible into 17.7 million common shares at 45 cents per share, leaving Pan American with approximately 19.59% of the issued and outstanding shares on a partially diluted basis.
Back in July, 2025, Galleon said it has received formal approval from Ontario’s Ministry of Energy and Mines to proceed with an advanced exploration bulk sample program at West Cache.
On April 9, 2025, the company said it received confirmation that Ontario’s Ministry of Energy and Mines has accepted and filed the closure plan for the West Cache project. This approval allows the company to initiate an advanced exploration program that includes the extraction of an 86,500-tonne bulk sample. The bulk sample is expected to grade 8.13 g/t gold and to contain an estimated 22,000 ounces of gold (before recoveries).
Data obtained from this underground exploration program, including drilling, mining methods, and mill processing will be integral for prefeasibility studies and will play a key role in derisking the project’s progression towards future mine development.
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