Strategic investment: McEwen Mining takes a stake in gold explorer Goliath Resources!

Legendary mining investor Rob McEwen secured a stake in Goliath Resources (TSXV GOT / WKN A2P063) back in 2023 – and later increased it several times. Now the gold explorer led by Founder & CEO Roger Rosmus has announced that gold producer McEwen Mining (WKN A3DMEX), founded by Rob McEwen, has also bought into Goliath!

It has just been announced that McEwen Mining will issue CAD 10 million worth of its own shares to Goliath – based on the closing price of McEwen Mining and Goliath yesterday (Tuesday). As a result, the group will hold 3.76% of the outstanding and issued shares of Goliath upon completion of the deal. In addition, they will receive half a Goliath warrant, which can be exercised for CAD 2.50 over 12 months. Goliath Resources will ultimately hold 868,056 McEwen Mining shares.

It is clear that Goliath Founder & CEO Rosmus is delighted with this strategic investment in his company. Rob McEwen had already recognized the potential of the high-grade Surebet discovery in 2023 and therefore made his personal investment back then.

The 2024 drilling campaign has achieved a significant breakthrough at the Surebet high-grade gold discovery in British Columbia’s Golden Triangle, Founder & CEO Rosmus added. The discovery is characterized by a series of stacked, gently dipping veins with widespread high-grade gold. These contain remarkable amounts of visible gold in all rock units (sediments, contact of sediments and volcanics, in the volcanics and in the intrusive-related dykes) and have abundant fine-grained visible gold, including coarse-grained visible gold. In its 2023 drilling, Goliath found visible gold in 32% of drill holes, but in 2024 this increased to 92%! The company also recently reported a 10-meter drill hole intercept of 132.93 g/t gold equivalent (plus several high-grade holes with multiple intercepts, the system remains wide open), the best drill interval to date. As Founder & CEO Rosmus explained, this is in the upper percentage range of all drill intercepts worldwide in the last 20 years!

Mr. Rosmus continued, “Each season we have seen the discovery get better, and in 2024 there were also several pleasant surprises, including the high percentage of visible gold in our deeper drilling into the system and our notable recently reported drill intercept. We still have 89 outstanding holes to report from the 2024 drilling season and believe we have made a second important discovery, this time a volcanogenic massive sulphide (VMS) 35 km north of Surebet. Rob McEwen is a Member of the Order of Canada and a member of the Canadian Mining Hall of Fame for his philanthropic achievements and the tremendous success he had in building Goldcorp from a small gold mining company into a success story as Goldcorp mined its Bonanza Zone at its Red Lake Mine, becoming one of the lowest cost high grade gold mining companies in the gold mining sector. His recognition of the success of the Surebet discovery in 2023 was greatly appreciated and we are pleased to add McEwen Mining to our shareholder list with this strategic investment. We are also very pleased that Goliath Resources will be a significant shareholder of McEwen Mining as the company is both engaged in gold mining and extensive drilling at its gold projects and has a world-class copper deposit that ranks among the top 10 undeveloped copper projects in the lowest cost quartile.”

Rob McEwen, Chairman and major shareholder of McEwen Mining, believes that the Goliath Resources team has done an excellent job in developing the Surebet discovery. He stated: “What initially caught my attention was the high-grade gold they discovered and that it was a grassroots discovery in the Golden Triangle, which is a prolific gold mining jurisdiction, one of the most important in Canada. Globally, grassroots discoveries of high-grade gold in a mining-friendly jurisdiction known for its high-grade gold mines are extremely rare. They were able to make this initial discovery because until recently the area was covered by glaciers and a permanent snowpack, which have retreated and now expose a large area of outcropping rock that has been significantly advanced in recent drilling seasons. McEwen Mining is committed to gold mining. Our gold mines are benefiting from record gold prices in 2024 and we will release an updated resource for our Fox Complex in the first quarter of 2025, where we are also undertaking a 69,500 meter (budgeted at $9.7 million) drilling campaign. We are also moving towards a feasibility study in the first half of 2025 with our Los Azules copper development project and are considering taking McEwen Copper public following the release of the feasibility study (McEwen Mining owns 46.4% of McEwen Copper, Stellantis owns 18.3%, Nuton is a Rio Tinto company that owns 17.2% and Rob McEwen owns 12.7% of McEwen Copper). I firmly believe that the future is very bright for both copper and gold and that McEwen Mining is well positioned with our assets to achieve significant growth potential in these metals.”

Now, Rob McEwen continued, they are looking forward to receiving the pending analytical results from the Surebet discovery and the new VMS discovery and now being a strategic investor in Goliath.

We at Goldinvest.de, who have been following the Goliath story for years, see today’s deal as another important vote of confidence from a legendary mining investor who knows exactly how to interpret the information available to date on the discoveries made by Goliath Resources. It is also significant that McEwen Mining is making this strategic investment now, despite the recent rapid rise in Goliath’s share price.