Goliath Resources (TSXV: GOT) has managed to secure a new strategic investor. The company has obtained the backing of McEwen Mining (TSX: MUX), who has invested in the company under a strategic arrangement.
The transaction will see McEwen take a 3.76% stake in the company, with an investment valued at $10.0 million. The investment reportedly follows McEwen’s founder, Rob McEwen, making three separate investments in Goliath personally in the last two years.
The investment will see McEwen Mining issue 868,056 shares to Goliath as a means of paying for the investment, with the exchange rate based on the closing prices of McEwen and Goliath on January 28. While it was not explicitly stated, this would imply McEwen invested in Goliath at $1.93 a share, resulting in the issuance of approximately 5.18 million shares.
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Each share of Goliath is to include a half warrant, which is exercisable at a price of $2.50 a share and contains an expiry of twelve months.
“We are delighted to have McEwen Mining make a strategic investment into Goliath Resources. [..] We are also very pleased that Goliath Resources will be a significant shareholder of McEwen Mining due to their combination of being a gold miner, their extensive drilling on their gold projects and their world-class copper asset that is in the top 10 undeveloped copper projects ranking in the lowest cost quartile as well,” commented Roger Rosmus, CEO of Goliath Resources.
Goliath Resources last traded at $1.93 on the TSX Venture.
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