Goliath Resources (TSXV: GOT; US-OTC: GOTRF) has completed the second and final tranche of a recently upsized private placement that would see the Canadian junior miner raise a total of $8.6 million.
Initially, the financing was set at $5 million, placing non-flow-through units of the company up for sale at 63¢ each and flow-through shares at 67¢ each. Each NFT unit contains half of a share purchase warrant with an exercise price of 78¢.
Goliath later decided to expand the financing and divide it into two tranches, with the first tranche covering the NFT units and FT shares, and the second tranche consisting solely of flow-through units priced at $1.00 each.
Proceeds will be used to fund Goliath’s exploration efforts at the Golddigger and Lucky Strike properties located in and around the Golden Triangle of northwestern British Columbia.
The first tranche totalling $4.1 million was completed last week, involving both McEwen Mining (TSX: MUX, NYSE: MUX) chairman Rob McEwen and Crescat Capital, Goliath’s largest shareholder. At closing, McEwen and Crescat each owned 2.4% and 18.4% of the company on a partially diluted basis. Last year, Goliath closed a previous private placement of flow-through units worth $778,400, bringing financing proceeds to almost $14.6 million.
Among the participants in the second tranche of about $4.5 million was a new 9.9% partially diluted strategic institutional shareholder. This, Goliath says, demonstrates the “new discoveries at its 100% controlled Golddigger property is getting the financial support of smart long-term money from investors recognized globally specializing in precious metals and mining.”
The Golddigger property covers 617 sq. km. in the southern Eskay Rift area, where Tudor Gold (TSXV: TUD) is developing one of the biggest gold projects in the world. Towards the north are Seabridge Gold‘s (TSX: SEA; NYSE: SA) KSM property and the Brucejack mine operated by Newcrest Mining (TSX: NCM; ASX: NCM).
The Golddigger project is characterized by the Surebet discovery, an extensive new high-grade gold-silver shear zone that has shown exceptional metallurgy with gold recoveries of 92.2%. Drilling to date has confirmed that the Surebet zone encompasses an area of 1.6 sq. km. and remains open.
Goliath shares were down 3.5% to 82¢ on Thursday morning, giving the Toronto-based precious metals explorer a market capitalization of $73.3 million. Its shares traded in a 52-week range of 53¢ and $1.74.
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