Crescat Capital will be exercising their pre-emptive right and have agreed to also purchase units upon completion of the non-brokered private placement to maintain their 18.4% ownership.
Rob McEwen increases ownership in Goliath Resources. (Credit: Khusen Rustamov from Pixabay)
Goliath Resources Limited (TSX-V: GOT) (OTCQB: GOTRF) (FSE: B4IF) (the “Company” or “Goliath”) is pleased to report that Mr. Rob McEwen has agreed to increase his personal ownership in Goliath by purchasing an aggregate of approximately 1,428,571 units upon completion of a non-brokered private placement. His first investment in Goliath was on October 2, 2023 through a non-brokered private placement representing a 2.4% ownership on a partially diluted basis. This will be Mr. McEwen’s second investment within two months that will increase his ownership to 5% on a partially diluted basis upon completion of his purchase.
Crescat Capital will be exercising their pre-emptive right and have agreed to also purchase units upon completion of the non-brokered private placement to maintain their 18.4% ownership.
The Company’s proposed non-brokered private placement is up to 2,597,403 charity flow-through units (“CFT Units”) at a price of $1.155 per CFT Unit for aggregate gross proceeds of up to $3,000,000 (the “CFT Offering”).
Each CFT unit will consist of one (1) common share that will qualify as a flow-through share within the meaning of Subsection 66(15) of the Income Tax Act (Canada) (the “Act”) and one (1) common share purchase warrant (each, a “Warrant”), with each Warrant entitling the holder thereof to purchase one (1) common share of the Company at an exercise price of $0.85 per share for a period of 24 months from the date of issuance. It is expected that the CFT Offering will close prior to December 31, 2023.
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 in 2019 for US$10 billion. Mr. McEwen is currently the Chairman and Chief Owner of McEwen Mining Inc., a gold and silver producer with operations in Nevada, Canada, and Mexico.
“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. 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. This further demonstrates our projects continue to attract experienced miners and smart long-term investors” states Mr. Roger Rosmus, Founder & CEO, “We look forward to Mr. McEwen’s and Crescat’s further input and guidance as we drill out the Surebet discovery and continue to unlock shareholder value from our extensive land package.”
Source: Company Press Release