Goliath Provides Corporate Update On Amended Property Agreements and Proposed Financing
Goliath Provides Corporate Update On
Amended Property Agreements and Proposed Financing
Toronto, Ontario – April 14, 2020, – Goliath Resources Limited (TSX-V: GOT) (OTCQB: GOTRF)
(Frankfurt: B4IE) (the “Company” or “Goliath”) is pleased to announce it has entered into two
separate amendment agreements (the " Amendments") with the J2 Syndicate (the " Optionor"),
whereby the parties have agreed to further amend the terms of Goliath's option (each, an
“Option” and collectively, the “ Options”) on the Golddigger Property and Luckys trike Property
(each, a "Property" and collectively, the “Properties”); and a financing.
The main points of the Amendments are as follows:
• Goliath will deposit, on/or before April 29 2020, $ 200,000 with the J2 Syndicate
from the sale and distribution of shares, warrants and/or other securities of the
Goliath by way of a flow-through and non-flow-through private placement.
• Goliath will commit to spend total exploration expenses of at least $ 200,000 on
its Golddigger Property by December 31, 2020 and a total of $800,000 on the
Luckystrike and/or Golddigger Properties on or before December 31, 2021;
• If Goliath incurs aggregate exploration expenses between January 1, 2020 and
December 31, 2023 of $6,000,000 on each Property and delivers a NI 43 -101
technical report which includes a resource calculation of gold equivalent mineral
reserves (proven and probable) and gold equivalent mineral resources (measured,
indicated and inferred categories) on the properties by December 31, 2024; then
Goliath can earn an initial 49% interest in the Properties and
• If Goliath incurs aggregate exploration expenses between January 1, 2024 and
December 31, 2026 of at least $8,000,000 on each property and delivers a NI 43-
101 technical report which includes a resource calculation of gold equivalent
mineral reserves (proven and probable) and gold equivalent mineral resources
(measured, indicated and inferred categories) on the Property by December 31,
2027 Goliath will own the remaining 51% interest in the Property, representing a
100% ownership interest in the Property subject to the royalties reserved to the
Optionors.
The Amendments are subject to:
• Goliath closing a financing (as referenced below) to raise aggregate net proceeds
of at least $200,000 not later than April 29, 2020 from the sale and distribution of
shares, warrants and/or other securities of the Goliath by way of a flow -through
and non-flow-through private placement.
• Goliath incurring total exploration expenses of at least $800,000 on the
Luckystrike and/or Golddigger Properties on or before December 31, 2021;
• Goliath issuing to the Optionors a total of 3,900,000 units at a price of $0.1 0 per
unit ( the “Consideration Units”). Each Consideration Unit will consist of one (1)
common share and one common share purchase warrant (a " Consideration
Warrant") with each Consideration Warrant exercisable for a period of five years
at an exercise price of $0.15 per share.
• The value of the Consideration Units shall be applied against certain cash property
payments required under the Options.
All excess exploration expenses incurred in the aggre gate on the J2 Syndicate’s optioned
properties from any year, may be carried forward to fulfill Goliath’s exploration expenditure
commitments in future years. Goliath has currently exceeded its minimum exploration
commitments for 2017, 2018 and 2019.
Financing
The Company is planning a non-brokered private placement to raise gross proceeds of up to
$550,000 pursuant to the issuance of $0.10 Non Flow Through Units (“NFT Units”) and/or $0.13
Flow Through Units (“FT Units”)
The NFT Units will be priced at $0.10 per NFT Unit. Each NFT Unit will consist of one (1) common
share and one common share purchase warrant (a " NFT Warrant") each NFT Warrant is
exercisable for a period of five years at an exercise price of $0.15 per share.
The FT Units will be priced at $0.13 per FT Unit. Each FT Unit will consist of one (1) flow through
common share and one non-flow through common share purchase warrant (a "Warrant"), each
Warrant exercisable for a period of two and one half years at an exercise price of $0.15 per share.
Please note that both the financing and Amended Property Agreements are subject to TSXV
approval.
For more information please contact:
Goliath Resources Limited
Mr. Roger Rosmus
President and Chief Executive Officer
Tel: +1-416-488-2887 x222
www.goliathresourcesltd.com
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