Galleon Gold Welcomes Strategic Investment by Pan American Silver and Signs an MOU for Toll Processing at the Bell Creek Mill

Core Viewpoint - Galleon Gold Corp. has secured a strategic investment from Pan American Silver Corp. through a non-brokered private placement, raising C$8,000,000, and has signed a memorandum of understanding for toll processing at the Bell Creek Mill for its West Cache Gold Project [1][2]. Investment Details - The investment involves an unsecured convertible debt financing (Debenture) with a term of 36 months, bearing an interest rate of 10.0% per annum, convertible into common shares at a price of $0.45 per share [2][3]. - Upon conversion, Pan American would hold 19.59% of the common shares on a partially diluted basis and 11.30% on a fully diluted basis, with rights to maintain up to a 19.9% ownership in future financings [2][3]. Use of Proceeds - Proceeds from the Debenture will be allocated for surface development at the planned bulk sample at West Cache, with a hold period of four months and one day for the shares [4]. Toll Processing Agreement - An MOU has been established with Lake Shore Gold for toll processing of mineralized materials from an 86,500-tonne bulk sample at West Cache, with material to be transported to the Bell Creek Mill [6][8]. - The arrangement is expected to be formalized into a definitive agreement soon, with Galleon Gold responsible for delivery and final product arrangements [6][8]. Project Overview - The West Cache Gold Project is an advanced-stage exploration project covering approximately 11,580 hectares, located 13 km west of Timmins, Ontario, and is part of the Western Porcupine Gold Camp [19][21]. - The project aims to extract an 86,500-tonne bulk sample to provide data for pre-feasibility studies and to mitigate risks associated with future mine development [11][12]. Technical Aspects - The underground test mining program will collect data for refining mining methods and assessing mill processing and recovery ratios, with gold recoveries expected to reach up to 98% [14][21]. - The project is strategically located near existing mining operations, enhancing logistical efficiency for ore transportation [13][19].