TORONTO: January 9, 2020. Galleon Gold Corp. (TSXV: GGO) (the “Company” or “Galleon Gold”) is pleased to announce that Eric Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, has exercised his right to convert a Galleon Gold Debenture (“Debenture”) in the amount of $3,000,000. The Debenture (see press release dated September 5, 2019) is convertible into common shares at a price of $0.05 per share for a total of 60,000,000 common shares.
Galleon Gold shareholders voted to approve Mr. Sprott as a “Control Person” of the Company at an Annual and Special Meeting held on December 11, 2019. A Control Person is defined by the TSXV as a person that holds a sufficient number of any securities of an issuer so as to affect materially the control of the Company, or that holds greater than 20% of the current shares outstanding.
At the time the Debenture was issued to Mr. Sprott, he owned and controlled 10,221,732 common shares of the Company representing approximately 12.1% of the then outstanding common shares of the Company (and, immediately prior to the conversion of the Debenture, approximately 5.3%). Mr. Sprott now beneficially owns and controls 70,221,732 common shares of the Company representing approximately 27.6% of the outstanding common shares.
President and CEO, Mr. R. David Russell commented, “We welcome Eric as a controlling shareholder and are very pleased he has placed his trust in management as we work towards developing the West Cache Gold Project in Timmins, Ontario and our Neal Gold Idaho Project”
Mr. Sprott acquired the common shares upon conversion of the Debenture for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the Company, including on the open market or through private acquisitions, or sell the securities, 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 2176423 Ontario Ltd.’s early warning report will appear on the Company’s profile on SEDAR and may also be obtained by calling Mr. Sprott’s office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
About Galleon Gold
Galleon Gold is a North American exploration and development company focused on advancing two projects. The Neal Gold Project in Idaho is owned in partnership Eric Sprott and the West Cache Gold Project is located 13 km west of Timmins Ontario. Both projects are located in known mining camps with excellent infrastructure.
Forward Looking Statements
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, expectations, plans, and objectives of Galleon Gold are forward-looking statements that involve various risks. The following are important factors that could cause Galleon Gold ’s actual results to differ materially from those expressed or implied by such forward-looking statements: changes in the world-wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future exploration activities and cash flows, and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. Galleon Gold undertakes no obligation to update such forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.