Pan American Silver: Early Warning News Release
Key Highlights
- ➤Pan American acquired 6,250,000 Galleon shares at C$1.12 each.
- ➤Galleon raised approximately C$30 million through bought-deal private placements.
- ➤Pan American now owns 15.6% of Galleon shares, or 27.3% partially diluted.
- ➤Pan American’s C$8 million debenture bears 10.0% annual interest and converts at C$0.45.
- ➤Pan American could own 19.6% of Galleon fully diluted after conversion and warrant exercise.
Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) ("Pan American" or the "Company") has acquired ownership of 6,250,000 common shares ("Common Shares") of Galleon Gold Corp. (TSXV: GGO) ("Galleon"), for C$1.12 per Common Share, pursuant to a non-brokered private placement (the "Acquisition"), which was completed contemporaneously with a "bought deal" private placement by Galleon (the "Bought Deal Offering"). Pursuant to the Bought Deal Offering, Galleon issued: (i) 4,717,000 Common Shares as "flow-through shares" within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the "Tax Act") (the "FT Shares") at a price of $1.59 per FT Share for aggregate gross proceeds of approximately $7.5 million; and (ii) 20,089,271 Common Shares (the "HD Shares") at a price of $1.12 per HD Share for aggregate gross proceeds of approximately $22.5 million, which includes 2,678,571 HD Shares issued pursuant to the full exercise of an over-allotment option by the underwriters of the Bought Deal Offering for gross proceeds of approximately $3 million. All amounts are in Canadian dollars.
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