Eric Sprott Announces Changes to His Holdings in Galleon Gold Corp.

Executive Summary

• Eric Sprott, via 2176423 Ontario Ltd., purchased 5,000,000 units of Galleon Gold Corp. in a private placement at $0.60 per unit for total proceeds of $3 million.
• Each unit consists of one common share and half of a warrant; the full warrant allows purchase of one share at $0.75 exercisable through December 4, 2026.
• The transaction increases Sprott’s beneficial ownership to approximately 14.9% (undiluted) and 23.7% (partially diluted), while overall shareholdings on a partially diluted basis decline by about 6.7% relative to the last early‑warning report.

Key Details

• Units Acquired: 5,000,000
• Price per Unit: $0.60
• Aggregate Consideration: $3,000,000 cash
• Unit Composition: 1 common share + ½ warrant (full warrant = right to buy 1 share at $0.75)
• Warrant Expiration: December 4, 2026
• Pre‑transaction Holdings (Sprott): 13,958,510 shares, $2 M convertible debentures, 3,030,000 warrants (≈18.0% undiluted, ≈29.2% partially diluted)
• Post‑transaction Holdings: 18,958,510 shares, $2 M convertible debentures, 5,530,000 warrants (≈14.9% undiluted, ≈23.7% partially diluted)
• Effect on Share Base: Decrease of ~6.7% in partially diluted holdings versus last early‑warning report due to concurrent share issuances.
• Purpose of Securities: Held for investment; Sprott may buy or sell additional securities in the future based on market conditions and strategic considerations.

Notable Quotes

(No direct quotes were provided in the release.)