Majestic's HKEX-Listed Subsidiary Persistence Announces HK$472 Million Financing

Executive Summary

• Persistence Resources Group Ltd., a 70.5% owned subsidiary of Majestic Gold Corp., announced a private placement financing on the Hong Kong Stock Exchange for up to HK$472 million (≈ CAD$84.5 million).
• Up to 400 million common shares will be issued at HK$1.18 per share, representing roughly 20 % of Persistence’s current outstanding shares and diluting Majestic’s ownership from 70.5 % to ~58.8 %.
• Net proceeds are earmarked primarily for potential gold‑mine acquisitions, acceleration of business expansion, and general working capital/corporate purposes.

Key Details

• Placement Size: Gross proceeds up to HK$472 million (≈ CAD$84.5 million).
• Shares Issued: Up to 400 million common shares.
• Price per Share: HK$1.18 (≈ CAD$0.211), a discount of ~19.2 % to the closing price on the agreement date and ~18.5 % to the five‑day average prior to the agreement.
• Agent Commissions: Up to 1.5 % in placing agents’ commissions, if any.
• Ownership Impact: Majestic’s stake will fall from 70.5 % to approximately 58.8 % post‑placement.
• Use of Proceeds:
  1. Potential gold‑mine project acquisitions.
  2. Acceleration of business expansion initiatives.
  3. General working capital and other corporate purposes.
• Regulatory Conditions: Closing subject to required approvals, including regulatory consents.

Notable Quotes

(No direct quotes were provided in the release.)