Galleon Gold completes royalty repurchase on West Cache Project, Ontario

Galleon Gold Corp. [TSXV: GGO; FSE: 3H90] has successfully completed the repurchase of a 3% net smelter return royalty on the company’s West Cache Gold Project in the Timmins mining camp, northeastern Ontario from a wholly owned subsidiary of Newmont Corporation [NYSE: NEM, ASX, PNGX: NEM].

Under the agreement, Galleon Gold has exercised its existing right to repurchase 1% of the royalty for $1,000,000 and, concurrently, paid $10,000,000 to acquire the remaining 2% royalty. Upon closing of the transaction, the royalty has been fully extinguished, resulting in West Cache’s principal resource being 100% unencumbered by net smelter return royalties. All amounts are in Canadian dollars.

David Russell, President and CEO of Galleon Gold, commented, “We are very pleased to have successfully completed this transaction with Newmont. As West Cache advances toward development, the elimination of the royalty significantly strengthens West Cache’s long-term economics. Completing this repurchase of the NSR at a pre-development stage positions the company to create maximum value for Galleon Gold’s shareholders as the project continues to grow.”

Galleon Gold is advancing the West Cache Gold Project with a disciplined, de-risking strategy centered on resource growth and an upcoming 86,500-tonne bulk sample program.