Galloper Gold Completes Debt Settlement

Rhea-AI Summary

Galloper Gold (OTC: GGDCF) issued 1,000,000 common shares at a deemed price of $0.065 per share to settle $65,000 of debt for past management services, completed November 27, 2025. The sole creditor was CEO Hratch Jabrayan, making the transaction a related party deal under MI 61-101. The company relied on the Issuer Not Listed on Specified Markets and Fair Market Value ≤ $2,500,000 exemptions to avoid formal valuation and minority approval requirements. The issued shares are subject to a statutory four-month hold period under applicable securities laws.

Positive

• Debt settled with equity: 1,000,000 shares for $65,000
• Transaction completed using MI 61-101 exemptions (no formal valuation)
• Related party creditor was CEO, simplifying counterparty coordination

Negative

• Related party transaction involving CEO may raise governance concerns
• Potential dilution from 1,000,000 new shares (size relative to O/S not disclosed)
• Issued shares subject to a 4-month statutory hold, delaying liquidity

News Market Reaction – GGDCF

-3.94%

1 alert

-3.94% News Effect

On the day this news was published, GGDCF declined 3.94%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Shares issued: 1,000,000 shares Deemed issue price: $0.065 per share Debt settled: $65,000 +3 more

6 metrics

Shares issued 1,000,000 shares Common shares issued in debt settlement

Deemed issue price $0.065 per share Price used to value debt settlement shares

Debt settled $65,000 Past management services debt excluding GST

Shares to CEO 1,000,000 shares Shares received by CEO Hratch Jabrayan in settlement

Fair market value cap $2,500,000 MI 61-101 exemption threshold referenced

Statutory hold period 4 months Hold period on shares issued in debt settlement

Market Reality Check

Price: $0.1030 Vol: Volume 350 is far below t...

low vol

$0.1030 Last Close

Volume Volume 350 is far below the 20-day average of 30,086 (relative volume 0.01). low

Technical Price 0.0477 is trading above the 200-day MA of 0.04 after this debt settlement update.

Historical Context

5 past events · Latest: Nov 19 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 19	Option grant	Neutral	-0.7%	Consultant stock options for 200,000 shares at $0.065 over 24 months.
Nov 19	Debt settlement proposal	Neutral	-20.6%	Plan to issue 1,000,000 shares at $0.065 to settle $65,000 fees.
Oct 27	Exploration update	Positive	+3.5%	Initiated targeted exploration evaluation on Glover Island prospects.
Oct 23	Exploration launch	Positive	-15.2%	Began broader Glover Island evaluation along ~15km gold trend.
Sep 30	Claims acquisition	Positive	-3.1%	Closed acquisition expanding Lucky Smoke and connecting to LPSE resource.

Pattern Detected

Operational and exploration updates with generally positive tone have often seen mixed-to-negative price reactions, suggesting a tendency for the stock to sell off or underperform after good news.

Recent Company History

This announcement completes a previously proposed equity-based debt settlement for $65,000 of management fees, following the November 19 proposal to issue 1,000,000 shares at $0.065. Recent news also included an incentive option grant for 200,000 shares and multiple exploration updates on Glover Island, alongside an acquisition expanding holdings to 122km² and tying into a 178,800 oz Au resource. Price reactions to these earlier exploration and acquisition milestones were often negative, framing today’s balance-sheet-focused update against a backdrop of mixed market reception.

Market Pulse Summary

This announcement formalizes an equity-based settlement of $65,000 in past management fees through i...

Analysis

This announcement formalizes an equity-based settlement of $65,000 in past management fees through issuing 1,000,000 shares at $0.065, categorized as a related party transaction under MI 61-101. It follows earlier communications about the proposed settlement and recent exploration and acquisition updates on Glover Island. Key factors to monitor include future financings, additional insider-related transactions, and how ongoing exploration results build on the 178,800 oz Au resource and expanded land package.

Key Terms

related party transaction, multilateral instrument 61-101, minority security holders, statutory hold period

4 terms

related party transaction regulatory

"As a result, the Debt Settlement is considered a related party transaction..."

A related party transaction is any deal or transfer of value between a company and people or entities with close ties to it — such as executives, major owners, family members, or affiliated businesses. Investors watch these transactions because they can favor insiders over outside shareholders, skirt fair market pricing, or hide risks; like selling your car to a relative at a friendly price, they require clear disclosure and scrutiny to judge impact on value.

multilateral instrument 61-101 regulatory

"as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders..."

Multilateral Instrument 61-101 is a securities regulation that sets rules for certain corporate deals—like mergers, asset sales, or related-party transactions—to protect minority shareholders by requiring extra disclosure, independent valuation and, in many cases, formal shareholder approval. Think of it as an impartial referee and checklist that forces companies to show the full playbook and get a vote or an independent price opinion, so investors can judge whether a proposed deal is fair and avoid being overridden by insiders.

minority security holders regulatory

"Protection of Minority Security Holders in Special Transactions ("MI 61-101")."

Minority security holders are investors who own a relatively small portion of a company’s securities—such as shares, bonds or options—and therefore do not control corporate decisions. They matter because, like minority partners in a group project, they can be outvoted or economically disadvantaged by majority owners through decisions such as mergers, dividends or new share issues, so legal protections and voting rights determine how well their interests are preserved.

statutory hold period regulatory

"The Shares issued... are subject to a statutory hold period of four months..."

A statutory hold period is a legally required time window during which newly issued securities or shares received by insiders cannot be sold. It matters to investors because it affects when those shares can enter the market, influencing supply, short-term liquidity and potential price pressure—think of it like a temporary “no-sell” tag that prevents an immediate flood of items onto a store shelf after a big restock.

AI-generated analysis. Not financial advice.

Vancouver, British Columbia--(Newsfile Corp. - November 27, 2025) - Galloper Gold Corp. (CSE: BOOM) (OTC Pink: GGDCF) (the "Company" or "Galloper") announces that, further to its news release of November 19, 2025, it has issued an aggregate of 1,000,000 common shares (each a "Share") in the capital of the Company at a deemed price of $0.065 per Share to settle debt owing pursuant to past management services provided to the Company for a total amount of $65,000 (excluding goods and services tax) (the "Debt Settlement").

Hratch Jabrayan, the CEO and a director of the Company, was the sole creditor in the Debt Settlement and received 1,000,000 Shares. As a result, the Debt Settlement is considered a related party transaction (as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company relied upon section 5.5(b) the "Issuer Not Listed on Specified Markets" and 5.7(a) the "Fair Market Value Not More than $2,500,000" and exemptions from the formal valuation and minority shareholder approval requirements, respectively, under MI 61-101.

The Shares issued in connection with the Debt Settlement are subject to a statutory hold period of four months following the closing of the Debt Settlement in accordance with applicable securities legislation.

About Galloper Gold Corp.

Galloper is focused on mineral exploration in the Central Newfoundland Gold Belt with its flagship Glover Island Property, 24 km southeast of Corner Brook, and its Mint Pond prospect in the Gander area. Galloper recently completed the first diamond drilling program at Glover Island since 2012, completing six holes with results pending.

For more information please visit www.GalloperGold.com and the Company's profile on SEDAR+ at www.sedarplus.ca.

On behalf of the Board of Directors,

Mr. Hratch Jabrayan
CEO and Director
Galloper Gold Corp.

Company Contact:

info@gallopergold.com
Tel: 778-655-9266

Investor Relations:
MarketSmart Communications
Tel: 877-261-4466

Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276045

FAQ

What did Galloper Gold (OTC: GGDCF) announce on November 27, 2025?

Galloper Gold issued 1,000,000 common shares at a deemed price of $0.065 to settle $65,000 of debt owed for past management services.

Who received the shares in Galloper Gold's debt settlement (GGDCF)?

The sole creditor was CEO Hratch Jabrayan, who received 1,000,000 shares in the settlement.

Why did Galloper Gold rely on MI 61-101 exemptions for the GGDCF share issue?

The company used the Issuer Not Listed on Specified Markets and Fair Market Value ≤ $2,500,000 exemptions to avoid formal valuation and minority shareholder approval requirements.

Are the shares issued in Galloper Gold's debt settlement tradable immediately?

No; the shares are subject to a statutory four-month hold period under applicable securities legislation.

Does the GGDCF debt settlement create a related party transaction?

Yes; because the creditor was the CEO, the issuance is classified as a related party transaction under MI 61-101.

How much nominal value was used per share in Galloper Gold's settlement (GGDCF)?

The deemed price was $0.065 per share, totaling $65,000 (excluding goods and services tax).