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Galleon Gold Closes Private Placement of C$3,196,440
Toronto, Ontario--(Newsfile Corp. - May 25, 2020) - Galleon Gold Corp. (TSXV: GGO) (the " Co...
About this update from Galleon Gold Corp
[{"type":"text","content":"Galleon Gold Closes Private Placement of C$3,196,440Toronto, Ontario--(Newsfile Corp. - May 25, 2020) - Galleon Gold Corp. (TSXV: GGO) (the \"Company\") is pleased to announce that it has closed a first tranche of its previously announced non-brokered private placement for aggregate gross proceeds of C$3,196,440 of (i) 32,640,100 units of the Company (the \"Units\") at a price of C$0.05 per Unit and (ii) 28,444,277 flow-through units (the \"FT Units\") at a price of C$0.055 per FT Unit (the \"Offering\").Each Unit consists of one common share in the capital of the Company and one-half of one common share purchase warrant (each whole warrant, a \"Warrant\"). Each Warrant shall entitle the holder to acquire an additional common share at a price of C$0.075 for a period of 24 months following the closing of the Offering. Each FT Unit consists of one common share in the capital of the Company which qualifies as a \"flow-through share\" as defined in subsection 66(15) of the Income Tax Act (Canada) (the \"FT Units Shares\") and one-half of one common share purchase warrant (each whole warrant, a \"FT Unit Warrant\"). Each FT Unit Warrant shall entitle the holder to acquire an additional common share at a price of C$0.075 for a period of 24 months following the closing of the Offering. Eric Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 20,000,000 Units for an aggregate amount of C$1,000,000. Prior to the Offering, Mr. Sprott beneficially owned and controlled 71,248,950 shares of the Company. As a result of the private placement, Mr. Sprott now beneficially owns and controls 91,248,950 Common Shares and 10,000,000 Warrants of the Company representing approximately 28.8% of the issued and outstanding Common Shares of the Company on a non-diluted basis and approximately 30.9% of the issued and outstanding Common Shares on a partially diluted basis.The Units were acquired by Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Galleon Gold including on the open market or through private acquisitions or sell securities of Galleon Gold including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.A copy of Sprott's early warnin...