Rob McEwen & Crescat Capital to Provide Strategic Investments in Goliath Through a Non-Brokered Private Placement as Drilling Increased to ~34,000 Meters During 2023 Based on Exceptional Results, Golddigger Property, Golden Triangle, B.C.
Rob McEwen & Crescat Capital to Provide Strategic Investments in Goliath
Through a Non-Brokered Private Placement as Drilling Increased to ~34,000
Meters During 2023 Based on Exceptional Results, Golddigger Property,
Golden Triangle, B.C.
TORONTO, Sept. 20, 2023 -- Goliath Resources Limited (TSX-V: GOT) (OTCQB: GOTRF) (FSE: B4IF) (the “Company” or
“Goliath”) is pleased to report Mr. Rob McEwen and Crescat Capital LLC have both agreed to make a strategic investment in
Goliath through a non-brokered private placement. It is scheduled to close on or before September 29, 2023.
Based on the exceptional drilling results during the 2023 season, Goliath successfully secured a total of 6 diamond drill rigs
and expanded the program from 18,000 to ~34,000 meters. 100% of all holes drilled in 2023 intersected mineralization over a
1.8 square kilometer area, were 42% of 89 holes encountered visible gold and several intercepted abundant visible gold up to
1% in diamond drill core.
Mr. Rob McEwen has agreed to subscribe for $1,000,000 of NFT units from an entity controlled by him. He is the founder and
former Chairman of Goldcorp where he discovered, built, and operated the Red Lake Mine in Ontario which was acquired by
Newmont Mining in 2019 for US$10 billion. Mr. McEwen is currently the Executive Chairman and Chief Owner of McEwen
Mining Inc.
Goliath’s largest shareholder, Crescat Capital, who currently owns ~18% (P/D) of the issued and outstanding common shares
of the Company, will be participating in the Offering pursuant to a pre-emptive right granted to them by the Goliath.
“We are extremely honoured and pleased to have Mr. McEwen participating in this financing as a lead order, which
demonstrates that our new discovery has attracted the attention of an esteemed investor and experienced miner. We look
forward to Mr. McEwen’s input and guidance as we further drill out the Surebet discovery and continue to unlock shareholder
value at our Golddigger Property” states Mr. Roger Rosmus, the Founder and Chief Executive Officer of Goliath, “as well, we
very much appreciate the continued support and guidance from the Crescat Capital team”.
Goliath intends to raise up to $5,000,000 through a non-brokered private placement in a combination of: (i) non-flow-through
units to be sold at a price of $0.63 per NFT unit. Each NFT unit will consist of one-half purchase warrant entitling the holder
thereof to purchase one common share for every whole warrant for a period of 18 months from the date of issuance at an
exercise price of $0.78; and (ii) flow-through shares to be sold at a price of $0.67 and will be composed of one common share
that will qualify as a flow-through share within the meaning of Subsection 66(15) of the Income Tax Act (Canada).
British Columbia Super Flow - the B.C. mining flow-through share (B.C. MFTS) tax credit allows BC Residents who invest in
flow-through shares to claim a provincial non-refundable tax credit of 20% of their B.C. flow-through mining expenditures. B.C.
flow-through mining expenditures are specific exploration expenses incurred by a PBC and renounced by a corporation issuing
the flow-through shares.
The warrants for the NFT units will be subject to the same terms, with each warrant entitling the holder thereof to purchase one
common share for a period of 18 months from the date of issuance at an exercise price of $0.78 per whole warrant share.
The Company intends to use the gross proceeds raised from the FT offering for exploration and related programs on Goliath’s
Golddigger and Lucky Strike properties located in and around the Golden Triangle of northwestern British Columbia. The
proceeds from the NFT offering be used for general working capital and administrative purposes.
The gross proceeds from the FT offering will be used for Canadian exploration expenses as such term is defined in paragraph
(f) of the definition of Canadian exploration expense in Subsection 66.1(6) of the tax act, flow-through mining expenditures as
defined in Subsection 127(9) of the tax act that will qualify as flow-through mining expenditures, and B.C. flow-through mining
expenditures as defined in Subsection 4.721(1) of the Income Tax Act (British Columbia), which will be incurred on or before
Dec. 31, 2024, and renounced with an effective date no later than Dec. 31, 2023. British Columbia Super Flow - the B.C.
mining flow-through share (B.C. MFTS) tax credit allows BC Residents who invest in flow-through shares to claim a provincial
non-refundable tax credit of 20% of their B.C. flow-through mining expenditures. B.C. flow-through mining expenditures are
specific exploration expenses incurred by a PBC and renounced by a corporation issuing the flow-through shares.
Goliath may pay finders' fees composed of cash and warrants in connection with the offering, subject to compliance with the
policies of the TSX Venture Exchange. All securities issued and sold under the offering will be subject to a hold period expiring
four months and one day from their date of issuance. Completion of the offering and the payment of any finders' fees remain
subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
About Crescat Capital LLC
Crescat is a global macro asset management firm headquartered in Denver, Colorado. Crescat’s mission is to grow and
protect wealth over the long term by deploying tactical investment themes based on proprietary value-driven equity and macro
models. Crescat’s goal is industry leading absolute and risk-adjusted returns over complete business cycles with low
correlation to common benchmarks. Crescat’s investment process involves a mix of asset classes and strategies to assist
with each client’s unique needs and objectives and includes Global Macro, Long/Short and Precious Metals funds.
Crescat is advised by Dr. Quinton Hennigh, its geologic and technical director on investments in gold and silver resource
companies. Dr. Hennigh became an economic geologist after obtaining his PhD in Geology/Geochemistry from the Colorado
School of Mines. He has more than 30 years of exploration experience with major gold mining firms that include Homestake
Mining, Newcrest Mining and Newmont Mining. Recently, Dr. Hennigh founded Novo Resources Corp., and is currently serving
as Co-Chairman. Among his notable project involvements are First Mining Gold’s Springpole gold deposit in Ontario, Kirkland
Lake Gold’s acquisition of the Fosterville gold mine in Australia, the Rattlesnake Hills gold deposit in Wyoming, and Lion
One’s Tuvatu gold project on Fiji, among many others.
Golddigger Property
The Golddigger Property is 100 % controlled covering an area of 61,685 hectares (152,427 acres) and is in a world class
geological setting of the Eskay Rift within the Golden Triangle of British Columbia. The property encompasses 56 kilometers of
the ‘Red Line’ that is host to multiple world class deposits. The Surebet discovery has exceptional metallurgy with gold
recoveries of 92.2% inclusive of 48.8% free gold from gravity alone at a 327-micrometer crush (no deleterious elements or
cyanide required). Its is in an excellent location close in proximity to the communities of Alice Arm and Kitsault where there is
a permitted mill site on private property. It is situated on tide water with direct barge access to Prince Rupert (190 kilometers
via the Observatory inlet/Portland inlet). The town of Kitsault is accessible by road (190 kilometers from Terrace, 300
kilometers from Prince Rupert) and has a barge landing, dock, infrastructure capable of housing more than 300 people, and
high-tension power. Additional infrastructure in the area includes the Dolly Varden Silver Mine Road (only 7 kilometers to the
East of the Surebet discovery) with direct road access to Alice Arm barge landing (18 kilometers to the south of the Surebet
discovery) and high-tension power (25 kilometers to the East of Surebet discovery). The city of Terrace (population 16,000)
provides access to railway, major highways, and airport with supplies (food, fuel, lumber, etc.), while the town of Prince Rupert
(population 12,000) is located on the west coast and houses an international container seaport also with direct access to
railway and an airport with supplies.
Qualified Person
Rein Turna P. Geo is the qualified person as defined by National Instrument 43-101, for Goliath Resource Limited projects, and
supervised the preparation of, and has reviewed and approved, the technical information in this release.
Other
Oriented HQ-diameter or NQ-diameter diamond drill core from the drill campaign is placed in core boxes by the drill crew
contracted by the Company. Core boxes are transported by helicopter to the staging area, and then transported by truck to
the core shack. The core is then re-orientated, meterage blocks are checked, meter marks are labelled, Recovery and RQD
measurements taken, and primary bedding and secondary structural features including veins, dykes, cleavage, and shears are
noted and measured. The core is then described and transcribed in MX Deposit™. Drill holes were planned using Leapfrog
Geo™ and QGIS™ software and data from the 2017-2022 exploration campaigns. Drill core containing quartz breccia,
stockwork, veining and/or sulphide(s), or notable alteration are sampled in lengths of 0.5 to 1.5 meters. Core samples are cut
lengthwise in half, one-half remains in the box and the other half is inserted in a clean plastic bag with a sample tag.
Standards, blanks and duplicates were added in the sample stream at a rate of 10%.
Grab, channels, chip and talus samples were collected by foot with helicopter assistance. Prospective areas included, but
were not limited to, proximity to MINFile locations, placer creek occurrences, regional soil anomalies, and potential gossans
based on high-resolution satellite imagery. The rock grab and chip samples were extracted using a rock hammer, or hammer
and chisel to expose fresh surfaces and to liberate a sample of anywhere between 0.5 to 5.0 kilograms. All sample sites were
flagged with biodegradable flagging tape and marked with the sample number. All sample sites were recorded using hand-held
GPS units (accuracy 3-10 meters) and sample ID, easting, northing, elevation, type of sample (outcrop, subcrop, float, talus,
chip, grab, etc.) and a description of the rock were recorded on all-weather paper. Samples were then inserted in a clean
plastic bag with a sample tag for transport and shipping to the geochemistry lab. QA/QC samples including blanks, standards,
and duplicate samples were inserted regularly into the sample sequence at a rate of 10%.
All samples are transported in rice bags sealed with numbered security tags. A transport company takes them from the core
shack to the ALS labs facilities in North Vancouver. ALS is either certified to ISO 9001:2008 or accredited to ISO 17025:2005
in all of its locations. At ALS samples were processed, dried, crushed, and pulverized before analysis using the ME-MS61 and
Au-SCR21 methods. For the ME-MS61 method, a prepared sample is digested with perchloric, nitric, hydrofluoric, and
hydrochloric acids. The residue is topped up with dilute hydrochloric acid and analyzed by inductively coupled plasma atomic
emission spectrometry. Overlimits were re-analyzed using the ME-OG62 and Ag-GRA21 methods (gravimetric finish). For Au-
SCR21 a large volume of sample is needed (typically 1-3kg). The sample is crushed and screened (usually to -106 micron) to
separate coarse gold particles from fine material. After screening, two aliquots of the fine fraction are analysed using the
traditional fire assay method. The fine fraction is expected to be reasonably homogenous and well represented by the
duplicate analyses. The entire coarse fraction is assayed to determine the contribution of the coarse gold.
The reader is cautioned that grab samples are spot samples which are typically, but not exclusively, constrained to
mineralization. Grab samples are selective in nature and collected to determine the presence or absence of mineralization and
are not intended to be representative of the material sampled.
About Goliath Resources Limited
Goliath Resources Limited is an explorer of precious metals projects in the prolific Golden Triangle of northwestern British
Columbia and Abitibi Greenstone Belt of Quebec. All its projects are in world class geological settings and geopolitical safe
jurisdictions amenable to mining in Canada.
For more information please contact:
Goliath Resources Limited
Mr. Roger Rosmus
Founder and CEO
Tel: +1.416.488.2887
www.goliathresourcesltd.com
* Widths are reported in drill core lengths and the true widths are estimated to be 80-90% and AuEq metal values are
calculated using: Au 1924.79 USD/oz, Ag 22.76 USD/oz, Cu 3.75 USD/lbs, Pb 2,128.75 USD/ton and Zn 2,468.50 USD/ton
on August 9, 2023. There is potential for economic recovery of gold, silver, copper, lead, and zinc from these occurrences
based on other mining and exploration projects in the same Golden Triangle Mining Camp where Goliath’s project is located
such as the Homestake Ridge Gold Project (Auryn Resources Technical Report, Updated Mineral Resource Estimate and
Preliminary Economic Assessment on the Homestake Ridge Gold Project, prepared by Minefill Services Inc. Bothell,
Washington, dated May 29, 2020). Here, AuEq values were calculated using 3-year running averages for metal price, and
included provisions for metallurgical recoveries, treatment charges, refining costs, and transportation. Recoveries for Gold
were 85.5%, Silver at 74.6%, Copper at 74.6% and Lead at 45.3%. It will be assumed that Zinc can be recovered with the
Copper at the same recovery rate of 74.6%. The quoted reference of metallurgical recoveries is not from Goliath’s Golddigger
Project, Surebet Zone mineralization, and there is no guarantee that such recoveries will ever be achieved, unless detailed
metallurgical work such as in a Feasibility Study can be eventually completed on the Golddigger Project.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange), nor the OTCQB Venture Market accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this press release constitute forward-looking information. These statements relate to future
events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated"
and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking
information and are based on Goliath’s current belief or assumptions as to the outcome and timing of such future events.
Actual future results may differ materially. In particular, this release contains forward-looking information relating to, among
other things, the ability of the Company to complete financings and its ability to build value for its shareholders as it develops
its mining properties. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or
projections set out in forward-looking information. Those assumptions and factors are based on information currently available
to Goliath. Although such statements are based on management's reasonable assumptions, there can be no assurance that
the proposed transactions will occur, or that if the proposed transactions do occur, will be completed on the terms described
above.
The forward-looking information contained in this release is made as of the date hereof and Goliath is not obligated to update
or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required
by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not
place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking
information contained herein.
This announcement does not constitute an offer, invitation, or recommendation to subscribe for or purchase any securities
and neither this announcement nor anything contained in it shall form the basis of any contract or commitment. In particular,
this announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States, or in
any other jurisdiction in which such an offer would be illegal.
The securities referred to herein have not been and will not be will not be registered under the United States Securities Act of
1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United
States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless
registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is
available.
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND
DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.