- Galleon Gold (TSXV:GGO) signed an indicative term sheet for a C$46 million debt facility from mining major Pan American Silver (TSX:PAAS)
- Galleon Gold is an advanced exploration and development company active in Timmins, Ontario
- Galleon Gold stock has added 221.05 per cent year-over-year
Ontario gold miner Galleon Gold (TSXV:GGO) signed an indicative term sheet for a C$46 million debt facility from mining major Pan American Silver (TSX:PAAS).
While the facility’s proposed terms are subject to confidentiality restrictions, we do know that Galleon also plans to execute a C$10.25 million non-brokered private placement with Pan American at C$0.60 per share.
Additionally, the explorer and developer signed an agreement with a syndicate of agents led by Cormark Securities, one of Canada’s top investment banks, for a C$14.75 million best-efforts private placement.
Proceeds will go towards surface infrastructure and underground development tied to the bulk sample program at Galleon’s flagship West Cache gold project in Ontario, as well as working capital, general corporate purposes and repurchasing a 3 per cent net smelter royalty on the project.
West Cache yielded a 2022 resource estimate of 472,000 ounces of gold indicated and 1,088,000 ounces inferred, and is being prepared for initial testing with an 86,500-ton underground bulk sample with eyes on substantiating a feasibility study. The project is only 7 kilometres northeast of Pan American’s producing Timmins West mine and 14 km southwest of Discovery Silver’s Hollinger mine.
According to Monday’s news release, the debt facility is expected to close by December 31, while the private placements are slated to close concurrently by December 4.
About Galleon Gold
Galleon Gold is an advanced exploration and development company active in Timmins, Ontario.
Galleon Gold stock (TSXV:GGO) last traded at C$0.61. The stock has added 221.05 per cent year-over-year.
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