11:15:02 EST Fri 03 Dec 2021
Enter Symbol
or Name

Majestic Gold Corp
Symbol MJS
Shares Issued 839,765,216
Close 2016-12-09 C$ 0.055
Recent Sedar Documents

Majestic Gold arranges $4.05-million private placement

2016-12-09 18:34 ET - News Release

Mr. Stephen Kenwood reports


Majestic Gold Corp. is proposing to sell, by way of a non-brokered private placement, up to 30 million units at a price of 13.5 cents per unit for gross proceeds of up to $4.05-million. Each unit will comprise one common share of the company and one common share purchase warrant. Each warrant will be exercisable to acquire one additional share at a price of 15.5 cents per share for a period of two years from the closing.

Proceeds from the private placement will be used to partially finance construction of housing for inhabitants of two villages that are in proximity to the Songjiagou open-pit operation, and for general working capital purposes.

Village relocation

Majestic's subsidiary, Yantai Zhongjia Mining Co. Ltd., secured unanimous approval from residents of the nearby Songjiagou and Fayunkang villages to relocate to a building site that is approximately two kilometres from the mine site. The two villages, both in proximity to the active open pit at Songjiagou, include residences for about 240 families who are sustained by agriculture, primarily apple orchards. A third village was relocated several years ago to facilitate construction of the tailings disposal site.

The relocation plan became necessary when the size of the mine licence was increased from 0.342 to 0.594 square kilometre in the spring of 2015. Officials from the company and its mining contractor have maintained a close relationship with representatives from the "new village relocation construction program," a government program that has encouraged village residential upgrading throughout the implementation of this program.

The development comprises six buildings, with sufficient capacity for up to 280 families. Construction of the buildings is currently continuing, with completion slated for spring of 2017. A total of $18.8-million has been budgeted to complete the relocation project, with the company's share being about $14.1-million. Villagers who relinquish their village leases will retain access to their farmland in return for a 75-year condominium lease.

We seek Safe Harbor.

© 2021 Canjex Publishing Ltd. All rights reserved.