www.goldengoliath.com
Golden Goliath Resources Ltd. is a junior exploration company focused on exploring and developing the gold and silver potential of an historic mining camp located in the world famous Sierra Madre Occidental Mountains of northwestern Mexico. Unlike most juniors, which have an option to earn an interest in a single property or a few scattered properties in various areas or countries, Golden Goliath controls an entire old mining camp, or district, that covers an area of 15 by 25 kilometres, with numerous past producing gold and silver mines dating back to the time of the Spaniards. Golden Goliath’s Uruachic claims are owned 100% by the Company and are fully paid for with no property option or purchase payments to make.
Golden Goliath Resources closes C$2.9m placing to fund Las Bolas gold project
Golden Goliath Resources (TSX-V: GNG, OTC: GGTH-F) announced it has closed a private placing, raising total gross proceeds of C$2.9 million. The proceeds will be primarily used to expand the mineral resource at the Las Bolas property and to explore the Filo do Oro zone, located on the east side of the property.
The issued units priced at C$0.25 consisted of one common share and one half of one non-transferable share purchase warrant, with each whole warrant exercisable within two years at C$0.25 per warrant.
Among the participating investors, Agnico Eagle Plc (NYSE:AEM) was a notable subscriber, and now holds 6,762,000 shares and 700,000 Warrants of Golden Goliath for 8.4% of the outstanding common shares. Agnico Eagle is represented on Golden Goliath’s board of directors by their vice president project development, Marc Legault. Sprott Asset Management was also a substantial participant in the private placing, with a subscription for 2.5m units. The securities add to its existing 7.3m shares, taking its overall holding to 8.8m shares and 1.25m warrants representing 10.9% of Golden Goliath’s outstanding shares.
The Las Bolas exploration program is being designed to expand existing inferred resources and test the potential target zone. The program will include underground development, surface and underground drilling and continued rehabilitation of old underground workings.
Earlier this month at the Filo de Oro target, the company reported chip sample results from the newly opened Los Hilos tunnel, with gold and silver grades averaging 2.07 g/t (grammes per tonne) and 98.61 g/t respectively over 151 metres. A total of 44 chip samples were included with individual samples grading as high as 33.9 g/t gold with 245 g/t silver over 0.65 metres. Golden Goliath said that the current results confirmed “excellent” vertical continuity of the mineralization.
Additionally, a portion of the proceeds are earmarked for working capital and to continue ongoing work on the mineral potential of Golden Goliath’s other targets, which cover the historic Uruachic mining camp in the Sierra Madre mountain range of north-western Mexico.
The financing was closed in two tranches and the newly issued securities are subject to hold periods, which run until May 23 2010 and June 5 2010. Whilst the newly issued warrants have a two-year lifespan, Golden Goliath, under certain circumstances, may also give 30 days notice to expire the warrants. Should Golden Goliath’s shares trade at or above a price of C$0.40 (volume weighted average), for 20 consecutive trading days and providing that re-sale restrictions on the shares have expired, the company can serve the expiry notice.
