Mr. Rod Husband reports
MAJESTIC COMPLETES $10,000,000 LOAN FINANCING AND $2,800,000 EQUITYFINANCING
Majestic Gold Corp. has completed the convertible loan and equity financings announced in its newsrelease of July 26, 2011. The company derived gross proceeds of $10-million from the loan financingand issued 14 million shares at the price of 20 cents per share to derive gross proceeds of $2.8-million fromthe equity financing. No warrants were included in either financing.
In accordance with the loan agreement, loan proceeds of $9-million have been advanced by the companyto finance its Song Jiagou gold project in China. The company has paid cash finders' fees equal to 2.5 per cent ofthe gross proceeds from the loan financing and 10 per cent of the gross proceeds from the equity financing. Thebalance of the proceeds from the financings will be used for the Song Jiagou project and for generalworking capital purposes.
All shares issuable pursuant to the conversion of loan principal or interest will be subject to resalerestrictions until Dec. 11, 2011. All shares issued pursuant to the private placement will be subjectto resale restrictions until Dec. 16, 2011.