Galleon Gold Receives Indicative Term Sheet for a $46 Million Debt Facility from Pan American Silver and Announces $25 Million in Equity Financings
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On November 24, 2025, Galleon Gold announced a comprehensive financing package to advance its West Cache Gold Project. The package includes: - An indicative term sheet for a C$46 million senior secured debt facility from strategic partner Pan American Silver Corp. - A C$10.25 million non-brokered private placement of 17,083,333 units at C$0.60 per unit. - A C$14.75 million brokered private placement ("LIFE Offering") of 24,583,333 units, also at C$0.60 per unit.
Each unit in the equity financings consists of one common share and one common share purchase warrant, exercisable at C$0.75 for 24 months.
The total proceeds of C$71 million will be used to advance surface infrastructure and underground development for the bulk sample program, repurchase a 3% net smelter royalty (NSR) on the project, and for working capital purposes.
This financing package is a game-changing event for Galleon Gold, fundamentally de-risking the company and its flagship West Cache project.
- Validation and Strategic Partnership: The $46 million debt facility from Pan American Silver (PAS) is a monumental vote of confidence from a major, established gold producer. It elevates PAS from a strategic investor to a core partner committed to the project's development. This validation is arguably more important than the funds themselves.
- Fully Funded for Critical Milestone: The combined $71 million in funding fully finances the company's next crucial phase: the 86,500-tonne underground bulk sample. This program is essential to confirm the geological model, test mining methods, and verify metallurgical recoveries, providing the data needed for a prefeasibility or feasibility study.
- Improved Project Economics: A portion of the proceeds is allocated to repurchasing the 3% NSR held by Newmont. The company announced an agreement to do so on October 16, 2025, for C$11 million, contingent on financing. Securing these funds allows the company to extinguish this royalty, which will materially improve the project's future economics and attractiveness.
- Strong Financing Terms: The equity portion of the financing is priced at $0.60, which is near the stock's 52-week high and represents a significant premium to previous financing rounds (e.g., the July 2025 convertible debenture at a $0.30 conversion price). This demonstrates strong market confidence and minimizes dilution compared to financing at lower prices.
- Progression and Execution: This news is the culmination of a series of positive developments throughout 2025, starting with the approval of the bulk sample closure plan in April, followed by the strategic investment from PAS in August. Management has successfully executed its strategy of systematically de-risking the project and securing the necessary funding on increasingly favorable terms.
In summary, this announcement transforms Galleon Gold from a capital-constrained explorer into a well-funded developer with a clear path forward and the backing of a major producer. The company's risk profile has been significantly reduced, and the probability of advancing West Cache toward production has increased dramatically.
Galleon Gold Corp. is an advanced-stage gold 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 the city of Timmins and is contiguous to Pan American Silver's Timmins West Mine. The company received approval in April 2025 for an 86,500-tonne underground bulk sample, which is the current focus of development and is intended to provide critical data to de-risk the project for a future production decision.