While many explorers have been struggling to raise fresh capital for some time now, Goliath Resources (TSXV GOT / WKN A2P063) really can’t complain in this respect. Just recently, the company was able to raise around CAD 8.6 million. And it didn’t come from just anyone, but largely from legendary mining investor and Goldcrop founder Rob McEwen and the experts at Crescat Capital. And now Mr. McEwen has decided to more than double his personal stake!
Mr. McEwen is the founder and former Chairman of Goldcorp, where he discovered, built and operated the Red Lake mine in Ontario, which was acquired by Newmont Mining for $10 billion in 2019. Mr. McEwen is currently Chairman and principal owner of McEwen Mining a gold and silver producer with mines in Nevada, Canada and Mexico.
Rob McEwen now holds 5% of Goliath
And as Goliath Resources announces today, the mining tycoon is acquiring a total of 1,428,571 Goliath units in a private placement. This brings Mr. McEwen’s stake to 5% (partially diluted) of Goliath’s outstanding shares! Following his investment in October, he still held 2.4% of the company.
And, in order not to be diluted, Crescat Capital is joining in and acquiring units in the financing round to maintain its stake in the company at 18.4%. A total of up to 2,597,403 charity flow-through units (CFT units) are to be issued in the placement at a price of CAD 1.155 per CFT unit. This will raise a further CAD 3 million for Goliath!
Specifically, each CFT unit consists of one common share of the Company (tax-deferred under subsection 66(15) of the Income Tax Act (Canada)) and one warrant. This warrant allows the holder to purchase one common share of Goliath at a price of C$0.85 for a period of 24 months. The placement is expected to be completed by the end of the year.
Conclusion: It speaks for itself that a mining expert and major investor like McEwen not only invests in an explorer like Goliath Resources in the first place, but increases this investment just a few months - but a few drill results (!) - later. Apparently, he and long-time major investor Crescat Capital like what is known about the Golddigger project and the Surebet discovery there. In any case, Goliath now has sufficient funds to maintain the high pace of exploration and expansion of its discovery in 2024. Investors can look forward to many more results from the 2023 drilling program before the project gets underway again.
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.