- Top gold and silver producer Pan American Silver (TSX:PAAS) made an C$8 million investment in junior miner Galleon Gold (TSXV:GGO) through a non-brokered private placement
- Galleon Gold is an exploration and development company advancing a preliminary economic assessment-stage project in Timmins, Ontario
- Galleon Gold stock has added 164.47 per cent year-over-year
Top gold and silver producer Pan American Silver (TSX:PAAS) made an C$8 million investment in junior miner Galleon Gold (TSXV:GGO) through a non-brokered private placement.
This content has been prepared as part of a partnership with Galleon Gold Corp., and is intended for informational purposes only.
The funding is in the form of unsecured convertible debt financing, and is tied to a memorandum of understanding with Pan American subsidiary Lake Shore Gold for toll processing of mineralized materials from Galleon’s planned 86,500-ton bulk sample from its West Cache gold project in Timmins, Ontario, at Pan American’s Bell Creek Mill about 40 km east.
Pan American oversees producing mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina, in addition to a global exploration and development portfolio prospective for untapped resources, and delivered record net earnings of US$189.6 million in Q2 2025.
The gold and silver producer agreed to a 36-month debenture, bearing interest at 10 per cent annually, that is payable in cash or shares and convertible at its discretion into Galleon Gold shares priced at C$0.45.
Post conversion, Pan American would own a 19.59 per cent position in Galleon on a partially diluted basis and an 11.30 per cent position on a fully diluted basis, with the potential to expand to and maintain a 19.9 per cent position on a fully diluted basis in future financings. Galleon may repay the debenture in whole or in part any time beginning on the second anniversary from issuance.
The junior miner will use the proceeds for surface development of the West Cache bulk sample. The 11,580-hectare project yielded a 2022 preliminary economic assessment detailing a C$1.17 billion net present value at a base-case of US$3,500 per ounce of gold, initial costs of only C$150 million and an after-tax payback period of only 3.3 years. A mineral resource estimate from the same year details 472,000 ounces indicated and 1.08 million ounces inferred.
Leadership insights
“Pan American is a well-established operator in the Timmins mining camp and we welcome their strategic investment and endorsement of the project and of our team,” R. David Russell, Galleon Gold’s president and chief executive officer, said in a statement. “Our metallurgical testing indicates processing at the Bell Creek Mill will yield excellent gold recoveries and dovetail well with Bell Creek’s current milling operations. Pan American has a proven template of hauling ore from their Timmins West Complex, located adjacent to West Cache, to their Bell Creek operations. We expect the toll milling arrangement will be beneficial to both companies and we look forward to working with their team to finalize the definitive agreement and progress towards Galleon Gold’s first pour.”
About Galleon Gold
Galleon Gold is an exploration and development company advancing a preliminary economic assessment-stage project in Timmins, Ontario.
Galleon Gold stock (TSXV:GGO) last traded at C$0.50. The stock has added 164.47 per cent year-over-year.
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