Pan American Silver Corp. (PAAS), a Canadian-based metals mining company, on Friday announced that it acquired 18,750,000 units of Galleon Gold Corp. (GGO.V, PNCKF) at C$0.60 per unit. The non-brokered private placement was completed alongside a brokered offering for a total of 50 million units.
The acquisition includes each unit consists of one common share and one-half warrant, with each whole warrant exercisable at C$0.75 until December 4, 2027.
Before the transaction, the company held no Galleon shares but had the right to acquire 17,777,777 shares through an existing C$8 million unsecured convertible debenture issued in August. That position represented about 18.66% on a partially diluted basis.
Following the acquisition, the company now holds 18,750,000 common shares, 9,375,000 warrants, and the debenture, representing roughly 14.7% of Galleon on a non-diluted basis and about 29.7% on a partially diluted basis.
The company also agreed not to convert the debenture or exercise warrants above 19.9% ownership until disinterested Galleon shareholders approve it as a control person.
The debenture carries a 10% interest rate, is payable in cash or shares, and is convertible at C$0.45 per share into up to 17,777,777 shares. A full conversion plus warrant exercise would give Pan American 45,902,777 shares, or about 19.6% on a fully diluted basis.
In the pre-market trading, Pan American Silver Corp is 1.74% higher at $44.96 on the New York Stock Exchange.
On Thursday, Galleon Gold Corp closed trading 2.04% higher at $0.5000 on the OTC.
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