Agnico Eagle and Sprott Asset Management increase ownership
VANCOUVER, April 25 /CNW/ - Golden Goliath Resources Ltd. is very pleased
to announce that it has now closed a combined brokered and non-brokered
private placement for total gross proceeds of $6,647,200. The financing
consisted of units at a price of $0.40 per unit (a "Unit"). Each Unit
consisted of one common share and one non-transferable share purchase warrant
exercisable for a period of two years at a price of $0.45 for each warrant.
Once resale restrictions on the shares having expired and upon Golden
Goliath's shares trading at or above a weighted average trading price of $0.75
for 20 consecutive trading days Golden Goliath may give notice that the
Warrants will expire 30 days from the date of providing such notice (in
writing to Warrant holders and via a news release). All securities issued are
subject to a hold period until August 21, 2007.
The proceeds will be used primarily to greatly increase the drilling
program currently underway on the Company's 100% owned properties in the
Uruachic Mining Camp, located in Mexico's Sierra Madre Occidental mountain
Golden Goliath engaged Bolder Investment Partners Ltd. as agent and who
received a commission of 7.5%, of which it elected to take 252,476 in Units,
1,482,250 Agent's warrants were issued exercisable for a period of two years
at a price of $0.45 per Agent's warrant and a $7,500 cash work fee.
The Company is also very pleased that Agnico Eagle Mines Limited was a
substantial purchaser of the private placement Units. With its previous
holdings of 1,612,000 shares and its purchase of 3,750,000 units of the
current financing, Agnico Eagle now holds 5,362,000 shares and 3,750,000
Warrants of Golden Goliath for 14.5% of the outstanding common shares of
Golden Goliath, on a partially diluted basis. These shares were purchased for
investment purposes. Agnico Eagle is represented on Golden Goliath's Board of
Directors by their Vice President Project Development, Marc Legault.
About Agnico Eagle
Agnico-Eagle is a long established Canadian gold producer with operations
located in Quebec and exploration and development activities in Canada,
Finland, Mexico and the United States. Agnico-Eagle's LaRonde Mine is Canada's
largest gold deposit in terms of reserves. The Company has full exposure to
higher gold prices consistent with its policy of no forward gold sales. It has
paid a cash dividend for 26 consecutive years.
Sprott Asset Management was also a substantial purchaser of the current
private placement units. With its previous holdings of 6,910,500 shares and
its purchase of 1,500,000 units of the current financing, Sprott Asset
Management now holds 8,410,500 shares and 3,000,000 Warrants of Golden Goliath
for 18.4% of the outstanding common shares of Golden Goliath, on a partially
diluted basis. These shares were purchased for investment purposes.
This news release does not constitute an offer to sell or solicitation of
an offer to buy any of the securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "US Securities Act") or any state securities laws
and may not be offered or sold within the United States or to U.S. Persons
unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.
ON BEHALF OF GOLDEN GOLIATH RE
J. Paul Sorbara, M.Sc., P.Geo.
The TSX Venture Exchange has not reviewed and does not approve or
disapprove the adequacy or accuracy of this release.
For further information:
For further information: To find out more about Golden Goliath Resources
Ltd. visit our website at: www.goldengoliath.com