Majestic Gold Corp. V.MJS

Questions about Persitence Group

[rbg3006]

I have some questions. Maybe someone from the forum can answer them for me.
When I look at the numbers of MJS, I wonder where the interface is
in the mining process between Persistence Group (PG) and MJS.

What are PG's responsibilities and what are MJS's responsibilities?

Who has the mining rights, MJS or PG?

How can nozzpack make a projection to the presumed IPO price if
for example, PG's current profit is not known.

And why is it possible to make a presumptive IPO price based on the
number of shares of MJS? PG's share count is 10 billions.
(About 10 times as many as MJS).

[Majestic]

My question would be how do they come up with 10 billions shares at PG About 10 times as many as MJS. 10 billion shares at 0.30 IPO price that would be $3 billion totally crazy.

[rbg3006]

That's exactly what i mean. One confuses PG with MJS. An IPO price of 0.30 Can$ is absolutely irrelevant. PG wants to do an IPO and not MJS. And can anyone tell me what PG is making per year at the moment?

[nozzpack]

Majestic owns 94% of persistence and Persitence owns 75% of of the SJ project. So, MJS owns 70% of the assets . The operator owns 25% and another small group about /5%. The IPO equity raise will dillute Persistence shares such that majestic will own just over 50% post IPO. If successful, the HK listing will be Persistence of which Majestic will own 50+ %. Persistence funds will be mainly used

[nozzpack]

Basically, they are spinning out the Persistence subsidiary to list on the HKEX whose funding will be by IPO and whose growth will be by acquisition . Its dilution will be limited by the requirement that Majestic remains the majority shareholder. It is my posit that Persistence upon Spinout will have shares outstanding owned 70% by Majestic....consolidating of shares perhaps before spin out. It

[rbg3006]

Somehow we don't understand each other. I don't doubt your principle statements regarding the changes to be expected as part of the IPO. But I don't understand the current construct of MJS and PG. PG is currently an independent corporation (according to Appendix V of the HKEX Application Document, the number of shares is 10 billions). MJS is the majority shareholder of PG

[nozzpack]

PG is going public which I with MJ holding the majority of the shares is the same as spinning out a subsidiary. The fact is that it's going to be publicly listed. A majority ownship which is what MJ will still be afte the public listing is no different than now except we own 70  % now and just over 50% afterwards. Its when equity ownership drops below 50% that you are referring to