Pan American Silver: Early Warning News Release

The most recent news, dated December 5, 2025, is an early warning report filed by Pan American Silver Corp. (PAAS). The report formally discloses Pan American's acquisition of 18,750,000 common shares and 9,375,000 share purchase warrants of Galleon Gold. This purchase was part of the C$30 million financing that Galleon Gold announced closed on December 4, 2025.

The filing details Pan American's updated holdings in Galleon Gold, which now stand at 14.7% of the issued common shares on a non-diluted basis and 19.6% on a fully-diluted basis (assuming conversion of their existing C$8 million convertible debenture and exercise of all warrants). Pan American has agreed to a standstill, preventing them from increasing their ownership beyond 19.9% until disinterested Galleon Gold shareholders approve their status as a "control person".

While the early warning report itself is a routine regulatory filing and therefore neutral from an operational standpoint, its content confirms and finalizes a series of game-changing events for Galleon Gold. The rating is "Routine - Positive" because it officially cements the strategic investment from a major producer, which is a significant positive.

The true material impact stems from the events leading to this filing: - November 24, 2025: Galleon announced a comprehensive funding package including an indicative term sheet for a C$46 million debt facility from Pan American Silver and a proposed C$25 million equity financing. - December 4, 2025: Galleon announced the closing of an oversubscribed equity financing, raising C$30 million (not C$25M) at C$0.60 per unit.

This sequence of events is transformative. In mid-2025, financial statements showed the company had minimal cash and a working capital deficit. The C$8 million debenture from Pan American in August was a crucial lifeline and a vote of confidence. The latest financing package (C$30M equity + C$46M debt facility) fully funds the company's path forward. The capital is intended to advance the West Cache Gold Project, specifically funding the 86,500-tonne bulk sample program, repurchasing a 3% Net Smelter Royalty (NSR) from Newmont, and for general corporate purposes.

The participation of Pan American as a lead investor, alongside notable mining investors Eric Sprott and Michael Gentile, provides immense project validation. Pan American's deep involvement, providing both debt and equity and a toll-milling MOU, significantly de-risks the project's path to production. The company has successfully transitioned from a capital-constrained explorer to a fully funded developer in under six months. The risk profile has now shifted from financing risk to execution risk.

Galleon Gold Corp. is a Canadian-based exploration and development company focused on its 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 contiguous to Pan American Silver's Timmins West Mine property. The project is considered advanced-stage, with an existing mineral resource estimate and a Preliminary Economic Assessment (PEA) completed in 2022. The company's current focus is on advancing the project by executing an 86,500-tonne underground bulk sample, for which it has received the necessary permits and is now fully funded.