The Toronto-based junior said the investment firm had made a C$2 million ($1.6m) strategic investment in the form of a non-brokered private placement, which gives Sprott an 8.5% stake post-financing.

Goliath expects to raise a total of $2.3 million in the offering priced at 55c per unit, with Crescat Capital participating to keep its current 9.9% interest.

“We appreciate Eric recognizing the potential upside for the company (…) Goliath has caught the attention of institutions, senior miners and the technical community,” president and CEO Roger Rosmus said in the statement.

The executive said Goliath planned to begin drilling at Surebet at its Golddigger project in the second quarter.

The junior discovered Surebet, located in the prolific Golden Triangle in B.C., in 2019. Last month, it expanded its Golddigger claim holdings by 28%.