Pan American's Bet on Galleon Gold Signals Shift in Timmins Camp

TORONTO, ON – November 24, 2025 – In a move signaling strong institutional and strategic confidence, junior explorer Galleon Gold Corp. (TSXV: GGO) has significantly upsized its equity financing to a potential C$30 million. The deal, anchored by an increased commitment from major producer Pan American Silver Corp., is set to aggressively accelerate development at the company's flagship West Cache Gold Project in the prolific Timmins, Ontario mining district.

This isn't just another financing round for a junior miner. It's a multi-faceted strategic transaction that provides a clear view into the mechanics of project de-risking and the symbiotic relationship between major producers and their smaller, exploration-focused counterparts. The capital infusion is poised to fund a critical bulk sample program and a shrewd financial maneuver to clean up the project's balance sheet, setting the stage for Galleon Gold’s next major growth phase.

Deconstructing the C$30 Million Deal

The financing package is a two-pronged effort, demonstrating demand from both strategic and institutional investors. The first component is a non-brokered private placement with Pan American Silver, which has been increased to C$11.25 million. The second is a "best efforts" brokered private placement, led by Cormark Securities Inc., which has been boosted to approximately C$16 million.

Both offerings are priced at C$0.60 per unit, with each unit comprising one common share and one-half of a purchase warrant. Each whole warrant allows the holder to acquire an additional common share at C$0.75 for 24 months, providing future upside. Should the agents exercise their over-allotment option in full, the total gross proceeds will reach the C$30 million headline figure.

The upsize is a critical detail; the offering was initially announced at C$25 million before being expanded due to strong demand. This suggests that investors, particularly the well-informed strategic partner in Pan American, see significant value at the current offering price and are eager to increase their position before the West Cache project advances further along the development curve. The concurrent closings, expected around December 4, 2025, will provide Galleon Gold with a robust treasury to execute its near-term operational plans without delay.

Pan American's Deepening Strategic Play

Pan American Silver's involvement goes far beyond a simple equity check and is the most telling aspect of this transaction. The major producer, which operates the Timmins West Mine just seven kilometers from Galleon Gold's project, is weaving a complex web of support that positions it as a key partner in West Cache's future.

This latest C$11.25 million investment follows an initial C$8 million unsecured convertible debenture Pan American provided in August 2025. More importantly, that earlier deal was accompanied by an indicative term sheet for a C$46 million debt facility and a Memorandum of Understanding (MOU) for potential toll processing of West Cache ore at Pan American's nearby Bell Creek Mill.

Viewed together, the strategy becomes clear. Pan American is not just a passive investor; it is actively facilitating a development path for West Cache that leverages its own regional infrastructure. By providing equity, debt, and a potential processing solution, Pan American de-risks the project for all shareholders while securing a strategic foothold in a promising, advanced-stage asset on its doorstep. This could be a precursor to a larger consolidation play in the Timmins camp or a way to secure future mill feed to optimize its existing operations. For Galleon Gold, it provides a level of validation and a tangible path to production that few junior miners can claim.

Unlocking Value Beyond the Drill Bit

The use of proceeds reveals a sophisticated approach to value creation that extends beyond simple exploration. The primary objectives are to fund the underground development for an 86,500-tonne bulk sample and to repurchase a significant royalty on the project.

The bulk sample is the most critical operational milestone. It is designed to extract an estimated 22,600 ounces of gold and will provide invaluable data on metallurgy, ground conditions, and mining methodologies. This information is essential for completing a pre-feasibility study, moving West Cache from a conceptual economic assessment to a more concrete engineering plan. The company has already made significant headway, securing its Closure Plan approval from the Ontario government in April 2025 and initiating site preparation work.

Equally important is the planned repurchase of a 3% net smelter return (NSR) royalty from a subsidiary of Newmont Corporation for C$11 million. An NSR entitles the holder to a percentage of revenue from a mine's production, before most costs are deducted. By extinguishing this royalty now, Galleon Gold dramatically improves the project's future economics. As CEO R. David Russell noted in a previous statement, buying back the royalty at a pre-development price "should provide Galleon Gold with improved economics in the future." This move consolidates 100% of the project's future revenue stream for its shareholders and makes the asset significantly more attractive for future financing or a potential acquisition.

Accelerating the Path to Production

With a fully funded treasury, Galleon Gold is now positioned to aggressively advance the West Cache project. The project's 2022 Preliminary Economic Assessment (PEA) already outlined a compelling case, projecting an 11-year mine life with robust economics. This new financing provides the capital to validate and build upon that initial study.

The funds will support over 1,200 meters of lateral development to access the core of the Zone #9 ore body, along with the necessary support infrastructure like ventilation raises and electrical substations. This work effectively builds the initial infrastructure for a future mine while serving the immediate needs of the bulk sample program. The market has responded favorably to this clear and executable strategy, with Galleon Gold's shares seeing a notable lift following the financing announcement. The combination of a major strategic partner, a clear development path, and a management team executing on value-accretive financial moves has placed Galleon Gold in an enviable position among its junior mining peers.

Now, all eyes will be on the execution of the bulk sample and the subsequent economic studies, which will determine the ultimate scale and profitability of the West Cache mine.