McEwen Mining grabs stake in Goliath Resources for $7m
McEwen Mining (NYSE, TSX: MUX) is investing C$10 million ($7m) to secure a 3.76% stake in precious metals junior Goliath Resources (TSX-V: GOT), which owns projects in the Golden Triangle of British Columbia.
The transaction, paid in McEwen shares, includes half warrants exercisable at C$2.50 for 12 months, with Goliath receiving 868,056 McEwen Mining shares.
The investment follows Goliath’s successful 2024 drilling campaign at its Surebet high-grade gold discovery in British Columbia’s Golden Triangle, where visible gold was found in 92% of drill holes, up from 32% in 2023.
A notable intersection returned 10 meters of 132.93 g/t gold equivalent. “This made for a gram/meter intersection that puts it in the top percentile of all intersections throughout the world in the past 20 years,” Roger Rosmus, founder and CEO of Goliath Resources, noted.
McEwen Mining chairman and CEO, Rob McEwen, said that what initially caught his attention was the high-grade gold in Goliath’s discovery, and that it was in one of the most prolific gold mining jurisdiction in Canada.
“Worldwide, grassroots discoveries of high-grade gold in a mining-friendly jurisdiction well-known for high-grade gold mines are exceedingly rare,” McEwen said.
Rob McEwan is not foreign to Goliath. In 2023, he acquired a 2.4% personal stake in the junior, which later upped to 5% on a partially diluted basis.
Goliath Resources has attracted other high profile Canadian mining investors, including Eric Sprott, with a C$2 million ($1.6m) strategic investment in the form of a non-brokered private placement, which gives Sprott an 8.5% stake post-financing.
In 2022, Crescat Capital acquired a 19.9% stake in the company.