Vancouver, British Columbia (FSCwire) - Majestic Gold Corp. (“Majestic” or the “Company”) (TSX.V: MJS, FSE: A0BK1D) announces that it is proposing to sell by way of a non-brokered private placement up to 66.7 million common shares (the “Offering”) at a price of C$0.15 per common share for gross proceeds of up to C$10,000,000 (the “Offering”).
Currently focused solely in China, Majestic is a British Columbia based company engaged in commercial gold production at the Songjiagou Gold Mine in eastern Shandong Province, China. Majestic holds a 70.5% interest in the Songjiagou Mine through a Chinese subsidiary.
All securities issued pursuant to the Offering will be subject to a four-month hold period from the closing date. The proceeds from the Offering will be used for general working capital, to advance the Company’s projects, and to fund possible acquisitions. The Company also wishes to explore direct financing of its Chinese subsidiary through an Asian Market facility, with a possible separate listing of the Subsidiary’s shares on an Asian exchange.
The Company has agreed to pay a Finder’s Fee in respect of the Offering to one or more arm’s length parties, equivalent to 5% of the private placement proceeds, payable in shares issued on the same terms as the Offering. The private placement is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSXV.
