Majestic's Persistence closes $472M (H.K.) placement

Executive Summary

• Persistence Resources Group Ltd., a HKEX‑listed subsidiary of Majestic Gold Corp., completed a private placement raising gross proceeds of HK$472 million (≈US$85.2 million).
• The placement issued 400 million common shares at HK$1.18 per share, representing a ~19% discount to the prior closing price and giving investors roughly 20% of Persistence’s post‑placement equity.
• Net proceeds will be used primarily for potential gold mine acquisitions, acceleration of business expansion, and general working capital.

Key Details

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

Notable Quotes

(No direct quotes were provided in the release.)