Majestic Gold Corp. (TSX.V: MJS) (“Majestic” or the “Company”) is pleased to announce that due to demand from investors, the previously announced non-brokered private placement of up to 30 million units (“Units”) of the Company at a purchase price of C$0.135 per Unit, has been fully subscribed and paid for. The Company now proposes to increase the size of the offering from C$4.05 million to up to C$10 million or 74,074,074 Units. The Units have the same terms as previously announced. Each Unit will comprise one common share (a “Share”) of the Company and one common share purchase warrant (a “Warrant”). Each Warrant will be exercisable to acquire one additional Share at a price of C$0.155 per Share for a period of two years from the closing.
Proceeds from the private placement will be used to partially fund construction of housing for inhabitants of two villages that are being relocated due to their close proximity to the Songjiagou open pit operation and for general working capital purposes.The private placement is subject to regulatory approval, and all Shares issued in connection with the private placement will be subject to a four-month and one day hold period under applicable securities laws.
About Majestic Gold
Currently focused solely in China, Majestic Gold Corp. is a British Columbia based company engaged in commercial gold production at the Songjiagou Gold Mine in eastern Shandong Province, China. Additional information on the Company and its projects is available at www.sedar.com and on the Company’s website at www.majesticgold.com.
Source: Majestic Gold
