Northwire Canada EditionTuesday, October 20, 2026
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GOLD 4141.90 −0.4% SILVER 57.99 +1.3% COPPER 6.62 +0.6% OIL 97.99 −0.6% PALLADIUM 1102.75 −1.8% SF 0.365 −2.7% EPL 0.175 +0.0% TORQ 0.055 +0.0% LMG 0.390 −2.5% MMY 0.760 +0.0% MOX 0.205 +0.0% ADZ 0.150 +25.0% NXS 0.150 +0.0% ETG 2.69 −11.2% EMNT 0.355 +1.4% PPM 0.120 −20.0% CERT 2.35 −0.4% KNG 0.950 −2.1% RYR 0.180 −5.3% VCG 1.20 +16.5% NVX 1.11 −0.9% GOLD 4141.90 −0.4% SILVER 57.99 +1.3% COPPER 6.62 +0.6% OIL 97.99 −0.6% PALLADIUM 1102.75 −1.8% SF 0.365 −2.7% EPL 0.175 +0.0% TORQ 0.055 +0.0% LMG 0.390 −2.5% MMY 0.760 +0.0% MOX 0.205 +0.0% ADZ 0.150 +25.0% NXS 0.150 +0.0% ETG 2.69 −11.2% EMNT 0.355 +1.4% PPM 0.120 −20.0% CERT 2.35 −0.4% KNG 0.950 −2.1% RYR 0.180 −5.3% VCG 1.20 +16.5% NVX 1.11 −0.9%
Financings Routine −

Majestic Gold Corp. Receives Conditional Approval for Private Placement Financing

Majestic raises capital despite holding $171 million in cash, as a governance dispute continues to loom over the company.

By The Northwire Desk — AI Analysis Jun 17, 2026 · 12:00 MJS · 0.12 Majestic Gold Corp.
Executive Summary
  • Majestic Gold Corp. received conditional TSX Venture Exchange approval for a non-brokered private placement of up to 384,615,385 common shares at CAD$0.13 per share.
  • Gross proceeds target up to CAD$49.23 million.
  • Net proceeds are earmarked for strategic equity investments, acquisitions, joint ventures outside China, technical studies, project advancement, and working capital.
  • A 30-day pro-rata offer was extended to major shareholder Mr. Fan Zhong Kong (~12.79% ownership) to maintain his proportionate stake.
  • Ongoing B.C. Supreme Court litigation seeks an injunction to halt the financing and remove four directors; the injunction hearing is scheduled for June 22, 2026.
  • Post-closing share count is expected to rise to ~1,483,666,095, representing ~36.9% dilution.
Material Impact
  • The financing is dilutive (~37% increase in share count) and priced at CAD$0.13, which values the company at roughly 57% of its cash balance. This effectively pays a premium for cash while issuing profitable mining operations at a discount.
  • The B.C. Supreme Court litigation creates immediate overhang. An injunction could halt the financing, while a successful motion to remove four directors could fundamentally alter corporate strategy.
  • The market has already priced in the dilution and governance fears. The stock declined from ~$0.15 (May 20) to $0.12 (June 16), and has remained flat since the Q1 earnings release on June 1.
  • Impact: Routine - Negative. The conditional approval is a standard procedural step for a TSXV financing. The negative sentiment is already reflected in the price action, and the financing itself is a routine, albeit dilutive, capital raise for a junior miner.
MJS · Price
Company Overview
  • Majestic Gold Corp. is a British Columbia-based junior gold producer operating in eastern Shandong Province, China.
  • Flagship asset: Songjiagou Gold Project, comprising an open-pit and underground (DGZ) mine.
  • Secondary asset: Mujin Gold Project, acquired via a 52% interest in 2025 through subsidiary Persistence.
  • The company also operates through subsidiary Persistence Resources Group Ltd., which is listed on the Hong Kong Stock Exchange.
Read the original news release →

More from Majestic Gold Corp.

Aug 31, 2026 · 08:05

Majestic reports cash-rich status despite a 55% increase in all-in sustaining costs and a 24% decline in production output.

Earnings Aug 26, 2026 · 07:30

Majestic sells the troubled Mujin project to activist Kong at break-even, allowing the company to refocus its efforts on the Songjiagou deposit.

M&A / Property Jul 06, 2026 · 08:31

Majestic’s first African project signals diversification despite dilution and governance risks.

M&A / Property Jun 30, 2026 · 08:05

Majestic closes a dilutive $49m equity raise as governance friction drives its stock to a 52-week low despite a strong cash balance.

Financings Jun 26, 2026 · 19:07

An activist shareholder with a 12.8% stake seeks to replace Majestic’s entire board over a deeply discounted $50 million placement trading at a 39% discount to cash value.

Management Jun 24, 2026 · 14:15

Majestic clears a 37% dilutive financing round despite shareholder revolt, while cost inflation and production dips weigh on fundamentals.

Financings