Majestic Gold Corp. Closes Private Placement
Majestic closes a dilutive $49m equity raise as governance friction drives its stock to a 52-week low despite a strong cash balance.
Majestic Gold Corp. has closed its previously announced non-brokered private placement, raising gross proceeds of C$49,234,099.98. The capital was generated through the issuance of 378,723,846 common shares at a price of C$0.13 per share. No finders’ fees or commissions were paid in connection with the transaction, and the shares carry a four-month and one-day hold period.
The company stated that the proceeds are designated for strategic equity investments, acquisitions, joint ventures outside of China, technical studies, project advancement, and general corporate purposes. The transaction remains subject to final acceptance by the TSX Venture Exchange.
Majestic Gold Corp. (MJS) completed its financing on June 24, 2026, following the BC Supreme Court's denial of a shareholder injunction. The transaction increases the company's share count from approximately 1.04 billion to roughly 1.48 billion, diluting existing shareholders by about 36.3%. The shares were issued at $0.13, a price significantly below the company's implied cash value per share of approximately $0.165 pre-dilution and below the trading range observed in May 2026.
Following the announcement, the market priced in the dilution and governance friction, with the stock falling to a 52-week low of $0.10 on June 29, 2026. The capital raise confirms a telegraphed, highly dilutive event amid an active proxy contest, without altering the fundamental operating outlook.
Majestic Gold Corp. is a British Columbia-based junior gold producer engaged in commercial gold production in eastern Shandong Province, China. Its flagship assets include the Songjiagou Gold Mines, which feature both open-pit and underground operations, as well as the Mujin Gold Project. In late 2025, the company expanded its portfolio by acquiring a 52% interest in the Yantai Mujin and Muping gold project for approximately C$15.8 million. Operations are subject to Chinese regulatory oversight, with recent safety-related suspensions highlighting jurisdictional and operational risks.