Canadian mining mogul Rob McEwen is upping his stake in Goliath Resources (TSXV: GOT; US-OTC: GOTRF), a junior that’s advancing gold projects in northwestern British Columbia.
The chairman and chief owner of McEwen Mining (TSX: MUX; NYSE: MUX) first invested in Goliath in early October, when he acquired a 2.4% ownership through a multi-tranche private placement that also involved Crescat Capital, Goliath’s largest shareholder.
With the latest private placement announced yesterday, McEwen will acquire 1.43 million units, raising his stake will to 5% (on a partially diluted basis).
The financing totals $3 million, comprising around 2.6 million flow-through units of Goliath priced at $1.155 per unit. Each unit contains one common share and a share purchase warrant exercisable at 85¢ per share.
The funds will be used for exploration purposes, in particular drilling and related programs on Goliath’s Golddigger and Lucky Strike properties located in and around B.C.’s Golden Triangle.
“We are very pleased to have Mr. McEwen’s continued support by increasing his personal ownership in Goliath within a few short months since his initial investment,” Goliath CEO Roger Rosmus said in a release. “As well, we appreciate Crescat Capital’s ongoing guidance and their participation in our financings to maintain its position as the largest long-term shareholder.”
Crescat Capital will participate in the financing and exercise its right to maintain an 18.4% ownership.
Golddigger covers 617 sq. km. in the southern Eskay Rift area, where Tudor Gold (TSXV: TUD) is advancing its 60%-held Treaty Creek project. Towards the north are Seabridge Gold’s (TSX: SEA; NYSE: SA) KSM property and Newmont‘s (TSX: NCM; NYSE: NEM) Brucejack mine.
The Surebet discovery at the project is 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.
The Lucky Strike property is found outside and to the south of Golden Triangle, covering 315 sq. km. within the Skeena Arch, a belt-scale structural corridor associated with porphyry and related mineralization. Two targets — Goldsource and Bullseye — are fully permitted for drilling.
Goliath’s stock traded at 79¢ apiece this morning for a market capitalization of $70.7 million.
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