Galleon Gold Announces Closing of Oversubscribed $30M Financing with Lead Orders from Pan American Silver and Eric Sprott
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On December 4, 2025, Galleon Gold announced the closing of its previously announced equity financing. The financing was oversubscribed, raising gross proceeds of C$30 million, up from the C$25 million originally announced. The company issued 50 million units at a price of C$0.60 per unit. Each unit consists of one common share and one-half of a common share purchase warrant. Each full warrant allows the holder to purchase one additional common share at an exercise price of C$0.75 for 24 months.
The financing was led by strategic investors including Pan American Silver Corp., Eric Sprott, and Michael Gentile, alongside other institutional investors. The proceeds will be used to advance the West Cache Gold Project, including funding surface infrastructure and development for the planned bulk sample, as well as for general corporate and working capital purposes.
This news is a game-changing event for Galleon Gold, marking the culmination of a transformative year and removing all near-term financial uncertainty.
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Financial De-Risking: The C$30 million equity raise, combined with the previously announced C$46 million debt facility from Pan American Silver, fully funds the company's planned 86,500-tonne bulk sample at its flagship West Cache project. It also provides capital to repurchase the 3% Net Smelter Royalty (NSR) from Newmont (announced October 16, 2025), making the project more attractive and royalty-free. As of the May 31, 2025 financials, the company had a working capital deficit of over C$4 million; this financing package completely transforms the balance sheet into one of strength.
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Strategic Validation: The participation of Pan American Silver, a major producer with operations in the Timmins camp, is the most critical aspect of this deal. Pan American is not just a passive investor; they are providing debt, taking a significant equity stake (with rights to increase to 19.9% fully diluted), and have signed an MOU for toll processing the bulk sample at their nearby Bell Creek Mill. This deep alignment serves as a powerful third-party endorsement of West Cache's potential and positions Pan American as a logical future partner or acquirer.
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Market Confidence: The oversubscription of the financing, increasing from C$25 million to C$30 million, demonstrates robust investor demand. The continued support from renowned mining investors Eric Sprott and Michael Gentile further solidifies market confidence and attracts broader investor interest.
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Clear Path Forward: Historically, the company has methodically advanced West Cache through permitting milestones, receiving its closure plan approval for the bulk sample on April 9, 2025. The primary obstacle was always funding. With capital now secured, the risk profile shifts from financing to execution. The company has a clear, funded path to execute the bulk sample, which is the critical next step to de-risk the project for a Pre-Feasibility Study (PFS).
This financing is not merely an incremental step; it is a pivotal moment that transitions Galleon Gold from a capital-constrained explorer to a fully-funded developer with a major strategic partner.
Galleon Gold Corp. is an advanced-stage exploration and development company. Its flagship asset is the 100%-owned West Cache Gold Project, located in the prolific Timmins Gold Camp in Ontario, Canada. The project is situated 13 km west of Timmins and is adjacent to major producers, including Pan American Silver. A Preliminary Economic Assessment (PEA) was completed in 2022. The company is now focused on executing an 86,500-tonne underground bulk sample to de-risk the project, confirm grades and metallurgy, and provide data for a Pre-Feasibility Study. Following a planned C$11 million royalty repurchase from Newmont, the project will be royalty-free.