Just a few days ago, gold explorer Goliath Resources (WKN A2P063 / TSXV GOT) announced the largest drilling program in the company’s history (40,000 meters) for its Golddigger project. This season, nine drills are set to explore and expand the already enormous Surebet discovery even further. Although Goliath is already one of the few very well-funded explorers on the TSX Venture, the company decided to raise an additional CAD 20 million gross for this and future work through a so-called “bought deal”. However, according to the company, the demand after the announcement of this deal was so overwhelming, especially from institutional investors, that the financing “had” to be extended by more than CAD 4 million!
CEO Roger Rosmus’ company therefore intends to carry out a non-brokered private placement on similar terms in parallel with the bought deal financing. This means that Goliath will issue up to 1,281,545 common shares as so-called “charity flow-through shares” – Canadian investors receive a tax advantage with this model – also at a price of CAD 3.17 per charity flow-through share. This would generate gross proceeds for the company of up to approximately CAD 4,062,500! In total, Goliath Resources will receive CAD 24.065 million, which can and will be used exclusively for exploration purposes in accordance with the flow-through model.
Goliath Resources will be more than flush with cash once both financings are completed and can use this to press ahead with the largest drilling campaign in the company’s history. Nine drills will drill 40,000 meters exclusively on the Surebet discovery, leveraging not only the findings of last year’s highly successful drilling (92% of holes had visible gold) but also of previous years starting in 2021. Should this program be as successful as last year’s – not unlikely in our view, as Goliath has probably never had such a detailed geological model of Surebet – the company would now definitely have the means to expand or accelerate its activities once again.
