RE:AGMI don't think you fully understand the objectives and outcomes here .
MJS with its 74% ownership of Sino Gold's two mines, producing 40,000 ounces per year, nets close to 30,000 ounces right now.
Excluding the planned acquisition, and using the grade, pit volume expansion and expanded mill, Sino Gold will produce about 120,000 ounces per year.
MJS will get 50% of this, which is 60,000 ounces per year at one of the lowest cash cost mines in the world .
So, they give up 25% ownership for Sino's IPO but double their net production .
It gets even better.
The PRC assets will be operated by Sino Gold under the HK listing, while Majestic under Canadian management, will trade under its TSX listing which can then use its very strong cash flows from its 60,000 ounce net production to acquire advanced assets in Canada and elsewhere.
In a sense, it is unlocking the tremendous value of its PRC assets, while spinning out its Canadian listing to shareholders to undertake new projects funded by its Sino gold 50 % interest.
Hope this helps..but note that the production calculations are mine, after researching the Prospectus,..they may be a bit low or a bit high but should be within +- 20,000 ounces gross