Rob McEwen appears to be keen to increase his ownership in several mining projects amid depressed prices of junior mining names. Just two months after making an initial $1.0 million investment in Goliath Resources (TSXV: GOT), it appears he wanted to increase stake.
McEwen has doubled his stake in the explorer, acquiring 1.4 million units of Goliath under a charity flow through offering at $1.155 per unit. The investment will see his stake climb from 2.4% to 5% on a partially diluted basis.
The remainder of the financing is expected to be taken down by Crescat Capital, who opted to maintain its 18.4% ownership interest in Goliath. In total, the offering will see 2.6 million units sold for gross proceeds of up to $3.0 million, with each unit containing one flow through share and one whole common share purchase warrant. Warrants contain an exercise price of $0.85 per each, and are valid for a period of two years.
READ: Goliath Resources Nearly Doubles Size Of Drill Program While Securing Investment From Rob McEwen
The investment follows McEwen also placing $1.0 million into Power Nickel (TSXV: PNPN) under a flow through offering conducted in October. That investment saw McEwen take a 1.4% stake in the nickel explorer, his first such investment into Power Nickel, which was done alongside CEO Terry Lynch.
Proceeds raised from the Goliath Resources offering is set to be used for exploration and drilling at Goliath’s Golddigger and Lucky Strike properties in British Columbia.
Goliath Resources last traded at $0.78 on the TSX Venture.
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