VANCOUVER, Canada (XOL Africa) — Pan American Silver has acquired an additional 6.25mn shares in Canadian mining company Galleon Gold for C$7mn, increasing its ownership to 15.6 per cent as the precious metals producer expands its investment in gold exploration and development assets.
In a regulatory disclosure issued through Business Wire, the Vancouver-based company said it purchased the shares at C$1.12 each through a non-brokered private placement completed alongside a larger equity fundraising by Galleon Gold.
The transaction increases Pan American’s direct and indirect holdings in Galleon to approximately 26.1mn common shares, representing 15.6 per cent of the company’s outstanding equity on a non-diluted basis.
Its potential ownership rises to approximately 27.3 per cent on a partially diluted basis when existing warrants and convertible debt instruments are taken into account.
The investment was completed alongside a bought-deal private placement in which Galleon raised approximately C$30mn through the issuance of two classes of shares.
The financing included 4.72mn flow-through shares priced at C$1.59 each, generating approximately C$7.5mn, and 20.09mn common shares priced at C$1.12, raising about C$22.5mn.
The latter included an additional 2.68mn shares issued after underwriters exercised their over-allotment option in full, generating approximately C$3mn.
Flow-through shares are a financing mechanism used in Canada’s mining sector that allows eligible exploration-related tax deductions to be transferred to investors, helping companies raise capital for qualifying resource development activities.
Pan American already held a substantial financial interest in Galleon before the latest transaction.
Its previous holdings included approximately 19.8mn common shares and 9.38mn warrants, each allowing the purchase of an additional share at C$0.75 until December 4, 2027.
The company also holds an C$8mn unsecured convertible debenture issued by Galleon in August 2025.
The debt instrument carries an annual interest rate of 10 per cent and matures three years after issuance. Interest can be paid in cash or shares at Pan American’s option.
The debenture can be converted into approximately 17.78mn common shares at C$0.45 per share, subject to its terms.
If Pan American exercises all its warrants and converts the principal amount of the debenture, its total holdings would increase to approximately 53.2mn shares, equivalent to 19.6 per cent of Galleon’s outstanding equity on a fully diluted basis, according to the disclosure.
The combination of direct share ownership, warrants and convertible debt gives Pan American significant financial exposure to Galleon’s future performance without requiring an outright acquisition.
Pan American said the transaction was undertaken for investment purposes and reflected its long-term approach to holding securities in the mining sector.
The company indicated that it could increase or reduce its position depending on market conditions, changes in investment strategy and other relevant factors.
The disclosure did not announce any agreement to acquire control of Galleon or specify additional operational commitments arising from the investment.
Pan American is among the established precious metals producers in the Americas, with operating mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina.
It also owns a 44 per cent joint venture interest in the producing Juanicipio silver mine in Mexico and holds the Escobal mine in Guatemala, which is currently not operating.
The company has spent more than three decades developing and operating precious metals assets across the Americas and is listed on both the New York Stock Exchange and Toronto Stock Exchange under the ticker PAAS.
The latest transaction comes as mining companies continue to use strategic equity investments and convertible financing to secure exposure to exploration and development projects while managing the capital commitments associated with outright acquisitions.
For Galleon, the equity financing strengthens its capital base, although the announcement did not specify how the proceeds would be allocated among its projects.
For Pan American, the additional shares consolidate an existing investment position while preserving flexibility to participate in future financing or adjust its exposure.
The company said any subsequent acquisitions or disposals would depend on market conditions and its investment plans.
The transaction concerns Canadian mining assets and does not involve an announced investment in Africa. However, it illustrates financing structures used internationally in the precious metals industry, including strategic shareholdings, convertible debt and exploration-focused equity placements.
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