Galleon Gold Completes $46 Million Senior Secured Debt Financing with Pan American Silver Corp.
Pan American Silver Tightens Grip on Galleon Gold with $46 Million High-Interest Debt Lifeline
On December 30, 2025, Galleon Gold (GGO) announced the completion of a $46 million USD senior secured credit facility with its strategic partner and major shareholder, Pan American Silver Corp. (PAAS). The debt has a 24-month maturity and carries a heavy interest rate of the 12-month prime reference rate plus 7.00%, payable monthly. The facility is secured by a first-ranking charge over substantially all assets, including the flagship West Cache Gold Project. Proceeds are earmarked to fund underground development and infrastructure for the 86,500-tonne bulk sample program, provide working capital, and immediately repurchase an existing 3% Net Smelter Return (NSR) royalty on the project.
This financing is a double-edged sword that marks the transition of Galleon Gold from a cash-strapped explorer to a funded developer, but at a significant cost. - Funding Certainty: Combined with the C$30 million equity raise closed on December 4, 2025, the company finally has the capital required to execute the bulk sample. This de-risks the "funding gap" that plagued the company throughout early 2025. - Strategic Entrenchment: Pan American Silver is now both a major equity holder (approx. 14.7% non-diluted) and the primary senior lender. This protects the project from predatory third-party lenders but effectively hands the "keys to the kingdom" to PAAS if Galleon fails to meet its 24-month repayment obligation. - Cost of Capital: The interest rate (likely 12%+ in current markets) is aggressive. For a pre-revenue company, the monthly interest carry will be a significant drain on the very capital just raised. - Royalty Repurchase: Using the initial draw to buy back the 3% NSR from Newmont (previously agreed upon in Oct 2025) is a major fundamental win, as it significantly improves the eventual project IRR and NAV.
Galleon Gold is focused on the West Cache Gold Project in the Timmins Mining Camp, Ontario. The project is located 7 km northeast of Pan American Silver’s Timmins West Mine. - Flagship: West Cache Gold Project. - Stage: Advanced Exploration / Bulk Sampling. - 2022 PEA Highlights: 11-year mine life, 85,470 oz Au annual production, and a US$987/oz AISC. - Project Status: Closure plan approved (April 2025), site prep underway (April-Sept 2025), and now fully funded for an 86,500-tonne bulk sample at an estimated grade of 8.13 g/t Au.