Galleon raising $7.5 million from upsized financing
Galleon Gold Corp. [GGO-TSXV] said it has upsized a previously announce non-brokered private placement of unsecured convertible debentures and capped the offering at $7.5 million in gross proceeds. That’s up from an earlier $7.0 million target. The company has said financier Eric Sprott (who previously owned a 21% stake in the company), and management will be subscribing to the offering.
The company intends to use the proceeds raised from the offering for the exploration and advancement of the company’s West Cache gold project in Timmins, Ont. The company is gearing up for its first test mining at West Cache; the 86,500-tonne underground bulk sample is designed to produce 22,600 ounces of gold (prior to recoveries) and provide valuable data for prefeasibility studies.
The company has said the debentures, priced at $50,000 each, will have a term of 36 months from the date of issuance, bear interest at a rate of 8.0% per annum payable in cash or common shares at the option of the investors at the end of the term and be convertible into common shares of the company at 30 cents per share. The company expects the offering to close by July 9, 2025.
Galleon eased lower on on the news, falling 2.8% or $0.01 to 34.5 cents. The shares trade in a 52-week range of 35.5 cents and 16 cents.
The company recently received formal approval from Ontario’s Ministry of Energy and Mines to proceed with an advanced exploration bulk sample program at its 100%-owned West Cache gold project.
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 data obtained from this underground exploration, including drilling, mining methods, and mill processing will play a key role in derisking the project’s progression towards future mine development.
With the bulk sample approval, Galleon Gold is now positioned to begin site preparation, surface work and predevelopment activities at the project. The company said it will be providing updates as work progresses throughout the bulk sample program.
Previously known as the Timmins Porcupine West Project, West Cache covers 10,370 hectares and is contiguous to the Timmins West Mine (now owned by Pan American Silver Corp. [PAAS-TSX, NASDAQ]). It is 14 kilometres southwest of the Hollinger mine.
A 2022 preliminary economic assessment (PEA) for the project demonstrates strong economics and blue-sky exploration upside the company has said. According to an updated mineral resource estimate dated January 10, 2022, the project contains an underground indicated resource of 472,000 ounces. On top of that is an inferred resource of 1.08 million ounces.