China copper smelters bracing for shortage of vital scrap metal
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Canadian mining mogul Rob McEwen has upped his stake in junior miner Goliath Resources (TSXV: GOT) to 5% (on a partially diluted basis) with the purchase of approximately 1.43 million units via a private placement.
The chairman and owner of McEwen Mining (NYSE: MUX) (TSX: MUX) made his first investment in Goliath as recently as October 2, when he acquired a 2.4% ownership through a multi-tranche private placement that also involved Crescat Capital, Goliath’s largest shareholder.
The latest financing comprises around 2.6 million flow-through units of Goliath priced at C$1.155 per unit for gross proceeds of C$3 million. Each unit contains one common share and a share purchase warrant exercisable at C$0.85 per share.
Goliath’s stock traded 2.6% higher at C$0.80 apiece as of 12:25 p.m. EDT in Toronto on Wednesday, for a market capitalization of C$71.8 million.
Crescat Capital, like in the October financing, will also be involved and exercising its pre-emptive right to purchase additional units upon completion to maintain an 18.4% ownership. The firm is advised by Dr. Quinton Hennigh, who is known for his geologic and technical expertise in gold and silver exploration.
“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,” Goliath CEO Roger Rosmus said in a news release.
Net proceeds this financing will again be used for exploration purposes, drilling and related programs on Goliath’s Golddigger and Lucky Strike properties located in and around the Golden Triangle of northwestern British Columbia.
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 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.
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.
