Majestic's HKEX-Listed Subsidiary Persistence Completes HK$472 Million Private Placement

Executive Summary

• Persistence Resources Group Ltd., a Hong Kong‑listed subsidiary of Majestic Gold Corp., completed a private placement raising gross proceeds of US$472 million (≈ CAD$85.2 million).
• 400 million common shares were issued at HK$1.18 per share, representing a ~19% discount to the prior closing price and constituting roughly 20% of Persistence’s pre‑placement equity (≈16.7% post‑placement).
• Net proceeds are earmarked primarily for potential gold mine acquisitions, acceleration of business expansion, and general working capital/corporate purposes.

Key Details

• Placement Size: US$472 million gross proceeds (≈ CAD$85.2 million).
• Shares Issued: 400 million common shares.
• Issue Price: HK$1.18 per share (≈ CAD$0.213), a ~19.2% discount to the closing price of HK$1.46 and an ~18.5% discount to the five‑day average of HK$1.448.
• Equity Dilution: Shares represent ~20.0% of total issued & outstanding shares pre‑placement; ~16.7% of the enlarged share count post‑placement.
• Placement Agent Commissions: HK$5,244,719 (≈ CAD$946,975), equal to 1.1% of gross proceeds, payable to Huafu International Securities Ltd., Forthright Securities Co., and First Shanghai Securities Ltd.
• Use of Proceeds (estimated net):
  1. Potential gold mine project acquisitions.
  2. Acceleration of business expansion initiatives.
  3. General working capital and other corporate purposes.

Notable Quotes

(No executive quotes were provided in the release.)