Major Investor Backs Rare Gold Discovery With US$10M Investment
Goliath Resources Ltd.'s (GOT:TSX.V; GOTRF:OTCQB; B4IF; FSE) latest investment deal strengthens its position in the Golden Triangle. Find out what this means for the company's future exploration plans.
McEwen Mining Inc. (MUX:TSX; MUX:NYSE ) has completed a strategic non-brokered private placement in Goliath Resources Ltd. (GOT:TSX.V; GOTRF:OTCQB; B4IF; FSE), acquiring 5,181,347 units of the company at a deemed price of US$1.93 per unit. The transaction, valued at approximately US$10 million, was executed through an issuance of 868,056 McEwen common shares at a deemed price of US$11.52 per share.
Following the completion of the investment, McEwen Mining now holds approximately 5.4% of Goliath on a partially diluted basis, with its chairman and chief owner, Rob McEwen, maintaining a personal stake of about 3.9%. McEwen, who first invested in Goliath in 2023, praised the company's Surebet gold discovery, emphasizing its strong drilling results in 2024, where 92% of drill holes contained visible gold. "Grassroots high-grade gold discoveries are exceedingly rare worldwide. Drill baby, drill, keep these great results coming," McEwen stated.
As part of the investment agreement, McEwen and Goliath entered into a standstill agreement, restricting McEwen from acquiring more than 9.9% of Goliath's issued and outstanding common shares without prior approval for a period of two years. Each unit issued in the transaction includes one common share and one-half of a common share purchase warrant, with each full warrant exercisable at US$2.50 per share for 12 months. All securities are subject to a four-month-plus-one-day holding period.
Goliath's CEO, Roger Rosmus, expressed enthusiasm for the investment, highlighting McEwen's reputation in the mining sector. "It is with great pleasure to announce the completion of the strategic investment from McEwen Mining. Mr. McEwen has made three personal investments in Goliath, and we are delighted to have him and his company as key strategic cornerstone shareholders," Rosmus said.
Gold's Safe-Haven Appeal Strengthens Amid Market Uncertainty
Gold's long-term outlook continued to garner attention from market analysts. On March 10, Gold Fix published a review of the book Gold & Silver: The Greatest Bull Market Has Begun, which presented a structured case for gold's ongoing strength. The analysis linked gold's performance to structural shifts in debt markets, central bank policies, and geopolitical factors such as de-dollarization. The book noted that "a secular bond bear market will force capital into alternative stores of value, with gold at the top of the list."
In light of that, gold prices remained strong as investors sought safe-haven assets amid global market uncertainty. According to a March 11 report from Kitco, gold futures rose by US$23.60 (0.81%) to US$2,923.10 per ounce as of the afternoon trading session. The surge followed renewed tariff escalations, with analysts noting that "these escalating trade measures have strengthened genuine concerns about a potential U.S. economic contraction." The report highlighted that the weakening U.S. dollar, which fell 0.52% to its lowest level since November 2024, also contributed to gold's upward momentum.
According to John Newell of John Newell & Associates, on March 3, the company continued to demonstrate significant upside following its discovery of a high-grade gold system in British Columbia's Golden Triangle.A separate analysis from 321Gold on March 11 compared the current stock market conditions to those of 1929, suggesting that gold had become an increasingly attractive asset for institutional investors.
The report stated, "Gold is, of course, the greatest asset in the world, and all investors should be obsessed with getting more." The commentary also pointed to an inverse head-and-shoulders pattern in gold's technical charts, indicating strong support at US$2,800 and an upward target of US$3,075 per ounce.
Meanwhile, Stockhead reported on March 11 that gold miners had gained prominence in Australia's ASX indices due to record-high gold prices. The report stated, "Gold miners are pulling in record profits with inflation slowing and prices sitting above US$4,600 per ounce." The analysis highlighted that strong liquidity and institutional interest had driven significant rebalancing in the sector, with several mining companies joining the ASX 200 and ASX 300 indices. The inclusion of new gold miners in these indices suggested increased confidence in the sector's stability and growth.
Surebet Zone Expansion: Goliath Resources Advances Exploration in the Golden Triangle
Goliath Resources continues to advance its flagship Golddigger Property in British Columbia's Golden Triangle, an area recognized for its prolific gold deposits. As outlined in the company's March 2025 investor presentation, the Surebet Zone, which has demonstrated high-grade gold mineralization, remains the focal point of the company's exploration activities. Goliath's 2024 drilling program delivered a 100% mineralization hit rate, with 92% of drill holes containing visible gold.
With McEwen's investment, Goliath is positioned to expand its 2025 drill program. The company has outlined plans for additional exploration, aiming to further delineate the Surebet deposit and identify new mineralized zones. The investment is also expected to support ongoing metallurgical studies and geophysical surveys designed to optimize future mining operations.
Goliath's Golddigger property benefits from strong infrastructure, including proximity to tidewater access, which could facilitate future development. The company's investor presentation highlights its strategic positioning among major mining stakeholders, including Crescat Capital, Eric Sprott, and Global Commodity Group (Singapore), alongside McEwen Mining. The continued backing of experienced mining investors underscores confidence in the project's long-term potential.
As the company advances its exploration activities, upcoming milestones include further drill results, expansion of land claims, and additional metallurgical testing. With strong financial backing and favorable drilling results, Goliath remains focused on its goal of advancing the Surebet Zone toward future development.
Experts Highlight Strong Growth Potential for Goliath Resources
Goliath Resources received positive evaluations from multiple analysts and newsletter writers, emphasizing the strong potential of its Golddigger property and the Surebet gold discovery. According to John Newell of John Newell & Associates, on March 3, the company continued to demonstrate significant upside following its discovery of a high-grade gold system in British Columbia's Golden Triangle. Newell noted that the Surebet discovery, previously covered by glaciers, had now been fully exposed and drilled, revealing a large-scale mineralized system. He highlighted that Goliath had surpassed its initial price target of CA$2.25 and was advancing toward its next price milestone of CA$4.10, with a long-term target of CA$11.50.
Ron Wortel of Zacks Investment Research maintained a favorable outlook on Goliath in their February 26 research note, citing the company's continued success in expanding its high-grade mineralized zones. The research firm set a valuation target of US$3.54, based on an estimated increase in gold-equivalent ounces from the Golddigger project. Zacks stated that "the Surebet Project continues to grow, with multiple stacked veins and a high-grade Bonanza Shear Zone, demonstrating excellent continuity over 1.8 km?." The report also emphasized that all 243 drill holes intersected mineralization, with 92% containing visible gold, reinforcing confidence in the project's resource potential.
Streetwise Ownership Overview*
Goliath Resources Ltd. (GOT:TSX.V; GOTRF:OTCQB; B4IF;FSE)
*Share Structureas of 3/12/2025The firm further noted that Goliath's Deep Zone discovery at 853 meters downhole suggested a significantly larger mineralized system than initially expected. The discovery of gold-rich intrusive dykes pointed to a potential Reduced Intrusion-Related Gold (RIRG) system, which could expand the project's resource base. Zacks also highlighted the company's strategic investment agreement with McEwen Mining, calling it a strong validation of Goliath's high-grade discoveries. The research firm stated that "the investment provides financial stability and strategic credibility to Goliath's ongoing exploration and drilling programs."
Ownership and Share Structure
According to company data, 19.0% of Goliath Resources is held by Management and Insiders. Strategic and Institutional investors collectively own 9.9%, with notable holdings including Crescat Capital LLC at 14.4%, Mr. Rob McEwen at 3.9%, Global Commodity Group (Singapore) at 3.5%, Mr. Eric Sprott at 3.0%, and Mr. Larry Childress at 1.0%. The remaining shares are held by retail investors.
Goliath has 136,120,269 shares issued and outstanding. The 52-week range of Goliath is CA$0.76 to $2.87.
| Want to be the first to know about interestingGold andSilver investment ideas?Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
1) James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
2) This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
For additional disclosures, please click here.