Galleon Gold Completes $7.5M Oversubscribed Private Placement of Convertible Debentures

Core Viewpoint - Galleon Gold Corp. has successfully closed the second and final tranche of its non-brokered private placement offering of convertible debentures, raising a total of $7,500,000 for its West Cache Gold Project and general working capital [1][4]. Offering Details - The offering consists of 20 convertible debentures with gross proceeds of $1,000,000 from this tranche [1]. - The debentures have a term of 36 months and bear an interest rate of 8.0% per annum, payable in cash or common shares at the investor's option [2]. - The conversion price for the debentures is set at $0.30 per common share [2]. Conversion Terms - Holders of the debentures can convert any portion of the principal into common shares at the conversion price during the term [3]. - If converted before the term ends, accrued interest will be payable in common shares based on the higher of the average closing price of the last 20 trading days or the closing market price [3]. Finder's Fees - The company paid finders' fees consisting of a cash commission of $60,000 and 200,000 non-transferrable finders' warrants, each allowing the holder to acquire one common share at $0.36 over a two-year period [4]. Use of Proceeds - Proceeds from the offering will be utilized for exploration and advancement of the West Cache Gold Project in Timmins, Ontario, as well as for general working capital [4]. Regulatory Compliance - The debentures and any underlying common shares will be subject to a hold period of four months and one day from the closing date, in accordance with applicable securities laws [5].