Canadian business magnate Rob McEwen doubled his stake in the British Columbia-focused junior explorer Goliath Resources Limited (TSX-V: GOT) (OTCQB: GOTRF). The investment indicates that the company may be positioned for a successful future.
On Wednesday, Goliath announced that McEwen had purchased approximately 1.4 million more shares. The chief owner of McEwen Mining Inc. (TSX: MUX) (NYSE: MUX) took a 2.4 per cent stake in the company in October. He now holds a 5 per cent share of Goliath.
“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,” said Roger Rosmus, CEO of Goliath.
Goliath will use the funding to advance exploration work at its Golddigger and Lucky Strike projects in BC’s Golden Triangle. The northwestern region of the province is known for having rich gold, silver and copper deposits.
“This further demonstrates our projects continue to attract experienced miners and smart long-term investors,” added Rosmus.
Goliath’s shareholder base comprises its Board of Directors and management team; Denver’s asset management firm, Crescat Capital; strategic and institutional investors; the Canadian billionaire investor, Eric Sprott; McEwen and others.
Recent drill results from the company’s B.C. properties returned 65 g/t gold equivalent (AuEq) over 7.9 metres and 34 g/t AuEq in a 9-metre interval.
Core sample from the Golddigger property in September. Photo via Goliath Resources
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Recent Goliath growth
In addition to its B.C. projects, Goliath operates the Nelligan gold project in Quebec’s Abitibi Greenstone Belt. Historically, the region has yielded over 200 million ounces of gold.
McEwen’s copper subsidiary also acquired significant investments from major companies in recent days. The automotive giant Stellantis (NYSE: STLA) invested US$315 million in the company this year.
Rio Tinto Ltd.’s (ASX: RIO) (LON: RIO) Nuton venture put US$58.4 into the copper miner in the past two years as well.
The price of copper has been rising as the demand for metals needed to construct electric vehicle batteries ascends.
rowan@mugglehead.com
