McEwen Mining Completes Acquisition of Stake in Goliath Resources through Private Placement

MT Newswires Live
03-10

McEwen Mining (MUX) has completed a non-brokered private placement with Goliath Resources, acquiring 5.2 million units at 1.93 Canadian dollars ($1.33) per unit, Goliath Resources said Monday.

Goliath said it received 868,056 of McEwen's shares at CA$11.52 per share in exchange.

The company said each unit consists of one common share and one-half of a common share purchase warrant, totaling 2.6 million warrants.

The warrants allow holders to purchase one common share at CA$2.50 per share for 12 months, the company said, adding all securities issued are subject to a four-month hold period.

As a result of the transaction, the company said McEwen Mining owns around 5.4% and Rob McEwen owns about 3.9% of Goliath, respectively, on a partially diluted basis.

Additionally, Goliath said McEwen Mining and Robert McEwen have entered a standstill agreement, preventing both from acquiring more than 9.9% of its shares or any material assets for two years without the company's consent.

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