The magician spawned goblins that possess the ability to breed with any race with any race with the pregnancy always resulting in goblin children.
I feel that the bolded part is wrong, but only because of the preceding statement being introduced by "that", but can't think of a way of rewording it in a single sentence.
Say this. The magician spawned goblins that possess the ability to breed with any race comma with ant race with the pregnancy always resulting in goblin children.
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Say this.
The magician spawned goblins that possess the ability to breed with any race comma with ant race with the pregnancy always resulting in goblin children.