Galleon Gold (TSX-V:GGO) has upsized its bought deal private placement to about C$27 million ($27.4 million), with closing targeted on or about 3 November.
The company says strong investor demand drove the increase from a previously announced C$20 million. It has signed an amended agreement with ATB Cormark Capital Markets, which acts as lead underwriter and sole bookrunner for a syndicate of underwriters.
Under the revised terms, the underwriters will buy 4,717,000 flow-through shares at C$1.59 each for gross proceeds of about C$7.5 million, and 17,410,700 common shares at C$1.12 each for about C$19.5 million.
The common share tranche rises from 11,160,700 shares in the original deal.
Galleon has also granted the underwriters an over-allotment option to buy additional common shares at C$1.12 for up to C$3 million. ATB Cormark can exercise the option at any time before closing.
Alongside the bought deal, a concurrent non-brokered placement with Pan American remains in place.
Pan American will buy 4,241,071 shares at C$1.12 for C$4.75 million, bringing the combined offerings to about C$31.75 million before any over-allotment. Those shares carry a hold period of four months and one day from closing.
Flow-through proceeds will fund Canadian exploration expenses at the West Cache Gold Project in Timmins, Ontario, qualifying for the Ontario focused flow-through share tax credit.
Galleon will renounce the expenditures to initial purchasers effective no later than 31 December 2026 and incur them by 31 December 2027.
Proceeds from the other common shares and the non-brokered placement will go towards advancing West Cache, working capital, and general corporate purposes.
Both offerings remain subject to customary closing conditions, including TSX Venture Exchange approval.
The non-brokered placement depends on the bought deal completing, but the bought deal does not depend on the non-brokered placement. The flow-through portion must close within 45 days of the announcement or it will not proceed.
Galleon has filed an amended offering document on SEDAR+ reflecting the upsize and adding Québec to the offering. It expects to file a French-language version on or about 20 October.
Galleon is advancing West Cache with a strategy centred on resource growth and an upcoming 86,500-tonne bulk sample program.
The company has 136,202,416 shares on issue, which closed at C$1.16 on 19 October for a market capitalisation of about C$158 million.
Galleon Gold is a Canadian developer advancing gold projects across Ontario and Idaho, US.
Write to JC Villarba at Mining.com.au
Images: Galleon Gold
