Business
Galleon Gold Announces Closing of C$3.5 Million Brokered Private Placement, Including a Lead Order from Eric Sprott
Toronto, Ontario--(Newsfile Corp. - March 25, 2022) - Galleon Gold Corp. (TSXV: GGO) (the "Com...
About this update from Galleon Gold Corp
[{"type":"text","content":"Galleon Gold Announces Closing of C$3.5 Million Brokered Private Placement, Including a Lead Order from Eric SprottToronto, Ontario--(Newsfile Corp. - March 25, 2022) - Galleon Gold Corp. (TSXV: GGO) (the \"Company\" or \"Galleon Gold\") is pleased to announce the closing of the previously announced \"best efforts\" brokered private placement (the \"Offering\") for gross proceeds of C$3,500,000 from the sale of 2,462,437 units of the Company (each, a \"Unit\") at a price of C$0.50 per Unit, 3,306,821 flow-through units of the Company (each, a \"FT Unit\") at a price of C$0.55 per FT Unit and 642,900 FT Units to be sold to charitable purchasers (each, a \"Charity FT Unit\") at a price of C$0.70 per Charity FT Unit. The Offering was led by Red Cloud Securities Inc. and included Paradigm Capital Inc. (the \"Agents\"). Each Unit consists of one common share of the Company (each a \"Unit Share\") and one half of one common share purchase warrant (each whole warrant, a \"Warrant\"). Each FT Unit and Charity FT Unit consists of one common share of the Company to be issued as a \"flow-through share\" within the meaning of the Income Tax Act (Canada) (each, a \"FT Share\") and one half of one Warrant to be issued as a \"flow-through share\" (each, a \"FT Warrant\"). Each Warrant and FT Warrant shall entitle the holder to purchase one common share of the Company at a price of C$0.75 at any time on or before March 25, 2024. The Company intends to use the proceeds raised from the Offering for the exploration and advancement of the Company's West Cache Gold Project in Timmins, Ontario as well as for general working capital purposes. Proceeds from the sale of FT Shares and FT Warrants will be used to incur \"Canadian exploration expenses\" as defined in subsection 66.1(6) of the Income Tax Act and \"flow through mining expenditures\" as defined in subsection 127(9) of the Income Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2022, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT Shares and FT Warrants. Certain insiders, directors and officers of the Company, including Mr. Sprott, subscribed for an aggregate of 1,152,437 Units under the Offering on the same terms as arm's length investors. The participation of the insiders, di...