Mining legend Rob McEwen takes strategic stake in Goliath Resources!
After numerous convincing and promising drill results, gold explorer Goliath Resources (TSXV GOT / WKN A2P063) now comes out with spectacular news of another sort. As the company just announced, mining legend and multimillionaire Rob McEwen makes a strategic investment in Goliath! And major shareholder Crescat Capital is going to keep up its end.
Mr. McEwen is one of the wealthiest Canadians and the founder and former Chairman of Goldcorp until its acquisition by Newmont for $10 billion. He is currently Executive Chairman and largest owner of McEwen Mining. Mr. McEwen has now announced that he will acquire NFT units from Goliath for the equivalent of $1 million through a company he controls. Crescat Capital currently holds 18% of the shares of Goliath and will exercise their right to increase its interest pro rata.
Financing in the amount of $5 million
Goliath plans to raise up to $5 million through a non-brokered private placement in a combination of: (i) non-flow-through units, which will be sold at a price of $0.63 CAD per NFT unit. Each NFT unit will consist of one-half of one warrant entitling the holder to acquire one common share for each whole warrant at an exercise price of C$0.78 for a period of 18 months from the date of issuance; and (ii) flow-through shares to be sold at a price of C$0.67 and consisting of one common share which will qualify as a flow-through share for the purposes of subsection 66(15) of the Income Tax Act of Canada.
(British Columbia Super Flow, the B.C. Mining Flow-Through Shares (B.C. MFTS) tax credit, allows British Columbia residents who invest in flow-through shares to claim a non-refundable tax credit equal to 20% of their B.C. flow-through mining expenditures. B.C. flow-through mining expenditures are specific exploration expenditures made by a PBC and waived by the corporation issuing the flow-through shares).
It’s an accolade
“We are very honored and pleased to have Mr. McEwen participate in this financing as a major investor. This demonstrates that our new discovery has attracted the attention of a respected investor and experienced mining entrepreneur. We look forward to Mr. McEwen’s contribution and guidance as we continue to drill out the Surebet discovery and further enhance shareholder value at our Golddigger property,” commented Roger Rosmus, Goliath’s Founder and Chief Executive Officer. He also reiterates the importance of the “continued support and guidance from the team at Crescat Capital.”
Goliath Resources intends to use the proceeds of this financing, which is expected to close on or before September 29, 2023, in the continued exploration of its Golddigger and Lucky Strike properties in or adjacent to British Columbia’s Golden Triangle (Flow Through). The proceeds of the Non Flow Through Financing are earmarked for general operating and administrative expenses.
CONCLUSION: With drill results for the 2023 exploration season already outstanding, Goliath has now deployed six diamond drills and expanded the planned drill program from 18,000 to 34,000 meters. To date, all drilling completed this year has encountered mineralization, opening up an area of more than 1.8 square kilometers. In this area, 42% of the 89 drill holes encountered visible gold and several holes also assayed large amounts of visible gold of up to 1% in drill core. This and the already very positive results from the Surebet discovery over the past two years have now apparently led to mining legend Rob McEwen stepping in. And this cannot be called anything else than an accolade.
According to §34b WpHG and according to Paragraph 48f paragraph 5 BörseG (Austria) we would like to point out that principals, partners, authors and employees of GOLDINVEST Consulting GmbH hold or may hold shares of Goliath Resources and therefore a possible conflict of interest exists. We also cannot exclude that other stock letters, media or research firms discuss the stocks we recommend during the same period. Therefore, symmetrical information and opinion generation may occur during this period. Furthermore, there is a consulting or other service contract between Goliath Resources and GOLDINVEST Consulting GmbH, which means that a conflict of interest exists.