$9.7M raised at .15cI have to say this is pretty uncommon - a company announcing a PP above market price by 200% and closing it within a few weeks. This must be a chinese investor that cannot buy on the open market and is aware of plans. If they are close to closing an acquisition or getting a local Chinese listing, that will be a major catalyst. Either access to the local Chinese market where this company is known, or increasing their annual gold production and profitability. Either way, this is a positive - just need the SP to react (doubtful in this market). We'll see.
B
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Majestic closes private placement for $9.7-million
2018-02-09 20:06 ET - News Release
Mr. Stephen Kenwood reports
MAJESTIC GOLD CORP. CLOSES PRIVATE PLACEMENT
Majestic Gold Corp. has closed its non-brokered private placement financing announced on Jan. 25, 2018, for total proceeds of $9,708,738 by the issuance of 64,729,919 common shares at 15 cents per common share.
In connection with the offering, the company paid an aggregate finder's fee to two arm's-length individuals who introduced it to private placement investors by issuing 3,236,246 common shares.
All securities issued in connection with the offering are subject to a statutory hold period expiring on June 9, 2018.
The company intends to use the proceeds from the offering for general working capital, to advance the company's projects and to finance possible acquisitions. The company also plans to explore direct financing of its Chinese subsidiary through an Asian market facility, with a possible separate listing of the subsidiary's shares on an Asian exchange.
About Majestic Gold Corp.