Majestic Gold Corp. Announces Proposed Disposal of Mujin Gold Project Interest

Majestic Gold Corp. announced a proposed disposal of its entire indirect 52% interest in Yantai City Mujin Mining Company Limited, the owner of the Mujin Gold Project in Shandong Province, China. The transaction is structured through two non-inter-conditional equity transfer agreements involving Persistence Gold Group Ltd., Majestic’s 58.75%-owned HKEX-listed subsidiary.

Total consideration for the deal is approximately US$25.9 million in cash, comprising US$15.9 million for equity interests and US$10.0 million for the repayment of related shareholder loans. Mr. Fan Zhong Kong will acquire the 41.051% indirect interest via PRG RES Holding 2 Ltd., along with a related shareholder loan, for approximately US$20.4 million. Yantai Yihui Investment Company Limited, an existing 40% owner of Yantai Mujin, will purchase the remaining 10.949% interest plus a related shareholder loan for approximately US$5.5 million.

Mr. Kong is scheduled to pay approximately US$12.5 million after conditions precedent are met, with the remaining US$7.9 million loan repayment due on or before December 31, 2026. Upon completion, Yantai Mujin will cease to be a subsidiary, and its financial results will be deconsolidated from Majestic. The company stated that the gain on equity is approximately RMB3.8 million, or 3.7%, above the aggregate equity investment before transaction costs, taxes, and accounting adjustments. The release does not provide pro forma production, revenue, cost, or balance-sheet impacts from the deconsolidation of Mujin.

Majestic Gold Corp. (MJS) is executing a strategic cleanup rather than a transformative transaction, with equity consideration totaling approximately US$15.9 million and total cash consideration reaching US$25.9 million. These figures stand against reported cash of US$171.6 million and total assets of US$348.2 million as of March 31, 2026. The most market-relevant aspect of the deal is the deconsolidation of a high-cost asset that has faced repeated suspensions, allowing the company to sharpen its focus on the Songjiagou project.

The economic gain from the transaction is modest, amounting to about RMB3.8 million, or 3.7%, above aggregate equity investment before costs, taxes, and accounting adjustments. After accounting for costs, the transaction may be roughly break-even or worse. Additionally, the sale reduces future gold output and leaves Majestic even more concentrated on its single Chinese asset.

The buyer is Mr. Fan Zhong Kong, an activist shareholder and joint venture associate, alongside Yihui Investment, an existing 40% partner, giving the transaction related-party characteristics. Majestic’s stock had already rebounded from C$0.09 to C$0.11 prior to this release, likely following the August 11, 2026, discontinuance of court proceedings with Mr. Kong. The market may have partly anticipated such an accommodation.

Majestic Gold Corp. is a junior gold producer operating in eastern Shandong Province, China, trading on the TSX Venture Exchange under the ticker MJS and on the FSE under A0BK1D. Its key producing asset has historically been the Songjiagou Gold Project.

The company is currently disposing of the Mujin Gold Project, which was acquired in February 2025. The Mujin project comprises the Denggezhuang Underground Gold Mine, the Houzhuang-Heiniutai Underground Gold Mine, and the Chahe Underground Gold Mine.

In July 2026, Persistence acquired a 20.96% interest in GoldStone Resources Limited, adding exposure to Ghana and Sierra Leone. No detailed reserve, resource, mine-life, or technical study data for Majestic’s own producing mines was provided.