Majestic Gold (TSX-V:MJS) plans to fund strategic equity investments, acquisitions, and joint venture opportunities outside China following a C$49.23 million ($50.21 million) capital raise.
Majestic has secured the gross proceeds through a previously announced non-brokered private placement, issuing 378.7 million common shares at C$0.13 each.
The funds will support technical studies, due diligence, project evaluations, property investigations for potential transactions, development opportunities, project funding commitments, corporate development activities, working capital, and general corporate purposes.
No finders’ fees or commissions were paid in connection with the placement. The common shares carry a four-month and one-day hold period from issuance under applicable securities laws, and the private placement remains subject to final acceptance from the TSX Venture Exchange.
The funding supports the company’s strategy to pursue investment and development opportunities outside China while continuing its existing operations.
Majestic Gold operates as a low-cost gold producer in eastern Shandong province, China, with commercial gold production at its Songjiagou gold mines and the Mujin Gold Project.
Write to France Pinzon at Mining.com.au
Images: Majestic Gold
